Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firm’s profit margin remains constant and the company is at full capacity. · Sales this year is P6,000,000 · Percentage increase projected for next year sales = 20% · Net income this year amounts to P600,000 · Retention ratio = 50% · Accounts payable = P1,100,000 · Notes payable = P180,000 · Accrued expenses = P500,000 · Projected excess funds available next year is determined to be P200,000 Questions: 1. Determine the spontaneous liabilities increase. 2. How much is the increase in Retained Earnings? 3. How much is the total assets?

Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firm’s profit margin remains constant and the company is at full capacity. · Sales this year is P6,000,000 · Percentage increase projected for next year sales = 20% · Net income this year amounts to P600,000 · Retention ratio = 50% · Accounts payable = P1,100,000 · Notes payable = P180,000 · Accrued expenses = P500,000 · Projected excess funds available next year is determined to be P200,000 Questions: 1. Determine the spontaneous liabilities increase. 2. How much is the increase in Retained Earnings? 3. How much is the total assets?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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