Question : Problem 9-1AFN equation
Broussard Skateboard's sales expected
Problem 9-1AFN equation
Broussard Skateboard's sales are expected to increase by 15% from $8 million in 2012 to $9.2 million in 2013. Its assets totaled $2 million at the end of 2012. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2012, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Brous-sard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.