1
answer
0
watching
102
views
28 Sep 2019
I was trying to understand how everything worked on this site anddid not realize that someone's karma points hinged on my rating. Iwas sick for a few days and did not respond--inadvertently someonemay have not received their karma points. I apologize for that andnow understand this process. I'd really appreciate any help. Thankyou.
Baxter Video Productâs sales are expected to increase by 20% from$5 million in 2010 to $6 million in 2011. Its assets totaled $3million at the end of 2010. Baxter is already at full capacity, soits assets must grow at the same rate as projected sales. At theend of 2010, current liabilities were $1 million, consisting of$250,000 of accounts payable, $500,000 of notes payable, and$250,000 of accruals. The after tax profit margin is forecasted tobe 5%,and the forecasted payout ratio is 70%. Use the AFN equationto forecast Baxterâs additional funds needed for the comingyear.
Part B- What would be the additional funds needed if the year-end2010 assets had been $4 million. Assume the company is operating at100% capacity. Why is the AFN different that the first one? And, isthe companyâs capital intensity ratio the same or different?
Part C- Using the original scenario, assume the company pays nodividends. What would be the additional funds needed for the comingyear? Why is the AFN different from the one found in Part B?
I was trying to understand how everything worked on this site anddid not realize that someone's karma points hinged on my rating. Iwas sick for a few days and did not respond--inadvertently someonemay have not received their karma points. I apologize for that andnow understand this process. I'd really appreciate any help. Thankyou.
Baxter Video Productâs sales are expected to increase by 20% from$5 million in 2010 to $6 million in 2011. Its assets totaled $3million at the end of 2010. Baxter is already at full capacity, soits assets must grow at the same rate as projected sales. At theend of 2010, current liabilities were $1 million, consisting of$250,000 of accounts payable, $500,000 of notes payable, and$250,000 of accruals. The after tax profit margin is forecasted tobe 5%,and the forecasted payout ratio is 70%. Use the AFN equationto forecast Baxterâs additional funds needed for the comingyear.
Part B- What would be the additional funds needed if the year-end2010 assets had been $4 million. Assume the company is operating at100% capacity. Why is the AFN different that the first one? And, isthe companyâs capital intensity ratio the same or different?
Part C- Using the original scenario, assume the company pays nodividends. What would be the additional funds needed for the comingyear? Why is the AFN different from the one found in Part B?
Baxter Video Productâs sales are expected to increase by 20% from$5 million in 2010 to $6 million in 2011. Its assets totaled $3million at the end of 2010. Baxter is already at full capacity, soits assets must grow at the same rate as projected sales. At theend of 2010, current liabilities were $1 million, consisting of$250,000 of accounts payable, $500,000 of notes payable, and$250,000 of accruals. The after tax profit margin is forecasted tobe 5%,and the forecasted payout ratio is 70%. Use the AFN equationto forecast Baxterâs additional funds needed for the comingyear.
Part B- What would be the additional funds needed if the year-end2010 assets had been $4 million. Assume the company is operating at100% capacity. Why is the AFN different that the first one? And, isthe companyâs capital intensity ratio the same or different?
Part C- Using the original scenario, assume the company pays nodividends. What would be the additional funds needed for the comingyear? Why is the AFN different from the one found in Part B?
Elin HesselLv2
28 Sep 2019
