Chang & Wu Inc A)-$14,440
B)-$15,200
C)-$16,000
D)-$16,800
E)-$17,640

Chang & Wu Inc.is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed The firm is operating at full capacity.Data for use in your forecast are shown below.Based on the AFN equation, what is the AFN for the coming year?
$$\begin{array}{l}\begin{array} {llll} \text { Last year's sales }=\$ 0 && \$ 200,000 &\text { Last year's accounts }\\\text { payable } & \$ 50,000\\\text { Sales growth rate =g }&&40 \%&\text { Last year's notes}\\\text { payable } & \$ 15,000\\\text {Last year's total assets =A*0}&& \$135,000 &\text {Last year's}\\\text {accruals}&\$20,000\\\text { Last year's profit margin=M} &&20.0 \%& \text { Target payout }\\\text { ratio }* 25.0 \%\\\end{array}\end{array}$$

A) -$14,440
B) -$15,200
C) -$16,000
D) -$16,800
E) -$17,640

Correct Answer:

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