Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350   Last yr's accounts payable $40 Sales growth rate = g 30%   Last yr's notes payable $50 Last year's total assets = A0 * $360   Last yr's accruals $30 Last year's prof margin = PM 5%   Target payout ratio 60%   a. $67.0     b. $63.9     c. $91.1     d. $77.9     e. $78.7

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.