In Your Internship with Lewis, Lee, & Taylor Inc A) ?$14,440
B) ?$15,200
C) ?$16,000
D) ?$16,800
E) ?$17,640

question 4

Multiple Choice

In your internship with Lewis, Lee, & Taylor Inc.you have been asked to forecast the firm's additional funds needed (AFN) for next year.The firm is operating at full capacity.Data for use in your forecast are shown below.Based on the AFN equation, what is the AFN for the coming year? $\begin{array}{lcc}\text { Last year's sales }=\mathrm{S}_{0} & \$ 200,000 \text { Last year's accounts payable } & \$ 50,000 \\\text { Sales growth rate }=\mathrm{g} & 40 \% \text { Last year's notes payable } & \$ 15,000\\\text { Last year's total assets }=\mathrm{A}_{0} * & \$ 135,000 \text { Last year's accruals } & \$ 20,000 \\\text { Last year's profit margin }=\mathrm{PM} & 20.0 \% \text { Target payout ratio } & 25.0 \text { \% }\end{array}$

• A) ?$14,440
• B) ?$15,200
• C) ?$16,000
• D) ?$16,800
• E) ?$17,640

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Definitions:

Downward Counterfactual Thinking

The mental process of imagining worse alternatives to events that have already occurred, often leading to feelings of relief or contentment.

Illusion Of Control

A cognitive bias that leads individuals to overestimate their ability to control events.

Gambler's Fallacy

The incorrect belief that past random events can influence the likelihood of future random events, especially in the context of gambling.

Illusory Correlation

Recognizing a link between two variables where there is none in reality.