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AFN equation Broussard Skateboard's sales are expected to increase by 20% from $7.6 million in 2016 to...

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Finance

AFN equation

Broussard Skateboard's sales are expected to increase by 20%from $7.6 million in 2016 to $9.12 million in 2017. Its assetstotaled $5 million at the end of 2016. Broussard is already at fullcapacity, so its assets must grow at the same rate as projectedsales. At the end of 2016, current liabilities were $1.4 million,consisting of $450,000 of accounts payable, $500,000 of notespayable, and $450,000 of accruals. The after-tax profit margin isforecasted to be 7%, and the forecasted payout ratio is 65%. Whatwould be the additional funds needed? Do not round intermediatecalculations. Round your answer to the nearest dollar.
$

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AFN equationBroussard Skateboard's sales are expected to increase by 20%from $7.6 million in 2016 to $9.12 million in 2017. Its assetstotaled $5 million at the end of 2016. Broussard is already at fullcapacity, so its assets must grow at the same rate as projectedsales. At the end of 2016, current liabilities were $1.4 million,consisting of $450,000 of accounts payable, $500,000 of notespayable, and $450,000 of accruals. The after-tax profit margin isforecasted to be 7%, and the forecasted payout ratio is 65%. Whatwould be the additional funds needed? Do not round intermediatecalculations. Round your answer to the nearest dollar.$

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