Cash
1
AP
2
Receivables
15
NP
11
Inv
11
LOC
0
Total CA
27
Acc
5
NFA
24
Total CL
18
Total Assets
51
Long-term Debt
12
Common stock
15
RE
6
Total L + CE
51
Given the
above balance sheet and the below...
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Question
Finance
Cash
1
AP
2
Receivables
15
NP
11
Inv
11
LOC
0
Total CA
27
Acc
5
NFA
24
Total CL
18
Total Assets
51
Long-term Debt
12
Common stock
15
RE
6
Total L + CE
51
Given theabove balance sheet and the below info, determine the AFN.
CurrentSales
100
Net income
5
Sales Growth  Â
15%
Dividends
1
Answer & Explanation
Solved by verified expert
3.6 Ratings (640 Votes)
Additional Funds Needed AFN is calculated using the belowformula1whereA0 current level of assets In our case A0 51 Here we assume that the plant is operating at full capacityand that each asset item grows
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