Daniel Sawyer, the CEO of the Sawyer Group, is initiatingplanning for the company's operations next year, and he wants youto forecast the firm's additional funds needed (AFN). The firm isoperating at full capacity. Data for use in your forecast are shownbelow. Based on the AFN equation, what is the AFN for the comingyear? Dollars are in millions.
| Last year's sales = S0 | $350 | Last year's accounts payable | $40 |
| Sales growth rate = g | 30% | Last year's notes payable | $50 |
| Last year's total assets = A0* | $780 | Last year's accruals | $30 |
| Last year's profit margin = PM | 5% | Target payout ratio | 60% |
Select the correct answer.
