Its profitmargin is forecasted to be 5 and the forecasted


Carter Corporation's sales areexpected to increase from $ 5 million in 2008 to $ 6 million in2009, or by 20%. Its assets totaled $ 3 million at the end of 2008.Carter is at full capacity, so its assets must grow in proportionto projected sales. At the end of 2008, current liabilities are $ 1million, consisting of $ 250,000 of accounts payable, $ 500,000 ofnotes payable, and $ 250,000 of accrued liabilities. Its profitmargin is forecasted to be 5%, and the forecasted retention ratiois 30%. Use the AFN equation to forecast the additional fundsCarter will need for the coming year.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Its profitmargin is forecasted to be 5 and the forecasted
Reference No:- TGS0644675

Expected delivery within 24 Hours