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Business, 01.04.2021 21:10 samueltaye

ABC Products sales are expected to increase by 20% from $5 million in 2009 to $6 million in 2010. Its assets totaled $3 million at the end of 2009. ABC is at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2009, current liabilities were $1million consisting of $250,000 in accounts payables, $500,000 in notes payables and $250,000 in accruals. The after-tax profit margin is forecasted to be 5% and the forecasted payout ratio is 70%. Use the AFN formula to forecast ABC Products funds needed for the upcoming year.

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ABC Products sales are expected to increase by 20% from $5 million in 2009 to $6 million in 2010. It...
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