John Hopkins, the President of the Cowbells Ltd., is initiating planning for the company's operations for next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN or Additional Funds Needed equation, what is the AFN for the coming year? Dollars are in millions.
Last year's sales $425 Last year's accounts payable $20
Sales growth rate 25% Last year's notes payable $75
Last year's total assets $520 Last year's accruals $15
Last year's profit margin 6.5% Target payout ration 55%