Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $3 million at the end of 2021 Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and 250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention rat is 45%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming yea Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ What additional funds
Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $3 million at the end of 2021 Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and 250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention rat is 45%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming yea Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $ What additional funds
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 1P: Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2018 to $9.2 million...
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