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Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2016 to $10.75...

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Finance

Broussard Skateboard's sales are expected to increase by 25%from $8.6 million in 2016 to $10.75 million in 2017. Its assetstotaled $4 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 6%, and the forecasted payout ratio is 55%. Whatwould be the additional funds needed? Do not round intermediatecalculations. Round your answer to the nearest dollar.

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4.0 Ratings (776 Votes)
2016 Sales 8600000 Total Assets 4000000 Spontaneous Current Liabilities Accounts Payable Accruals Spontaneous Current Liabilities 450000 450000 Spontaneous Current Liabilities 900000    See Answer
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