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Business, 07.12.2019 07:31 CauseWhyNot6235

The additional funds needed (afn) equation green moose company has the following end-of-year balance sheet: green moose company balance sheet for the year ended on december 31 assets liabilities current assets: current liabilities: cash and equivalents $150,000 accounts payable $250,000 accounts receivable 400,000 accrued liabilities 150,000 inventories 350,000 notes payable 100,000 total current assets $900,000 total current liabilities $500,000 net fixed assets: long-term bonds 1,000,000 net plant and equipment $2,100,000 total debt $1,500,000 (cost minus depreciation) common equity common stock 800,000 retained earnings 700,000 total common equity $1,500,000 total assets $3,000,000 total liabilities and equity $3,000,000 the firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. in the year that just ended, green moose company generated $400,000 net income on sales of $12,500,000. the firm expects sales to increase by 18% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. suppose green moose company's assets are fully utilized. use the additional funds needed (afn) equation to determine the increase in total assets that is necessary to support green moose company's expected sales. (note: do not round intermediate calculations.) $540,000 $513,000 o $459,000 $594,000 when a firm grows, some liabilities grow spontaneously along with sales. spontaneous liabilities are a source of capital that the firm will generate internally, so they reduce the need for external capital. how much of the total increase in assets will be supplied by spontaneous liabilities for green moose company this year? (note: do not round intermediate calculations.) o $72,000 o $68,400 o $61,200 $79,200 in addition, green moose company is expected to generate net income this year. the firm will pay out some of its earnings as dividends but will retain the rest for future asset investment. again, the more a firm generates internally from its operations, the less it will have to raise externally from the capital markets. assume that the firm's profit margin and dividend payout ratio are expected to remain constant. from operations that will be added to retained given the preceding information, green moose company is expected to generate $ earnings. (note: do not round intermediate calculations.) . (note: do not round intermediate according to the afn equation and projections for green moose company, the firm's afn is $ calculations.)

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