Chua Chang & Wu Inc ?
A) -$14,820
B) -$23,180
C) -$19,000
D) -$21,280
E)

question 34

Multiple Choice

Chua Chang & Wu Inc.is planning its operations for next year,and 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? $\begin{array}{llll}\text { Last year's sales }=\mathrm{S}_{0} & \$ 200,000 & \text { Last year's accounts payable } &\$ 50,000 \\\text { Sal es growth rate }=\mathrm{g} & 40 \% & \text { Last year's notes payable } & \$ 15,000 \\\text { Last year's total assets }=\mathrm{A}_{0} * & \$ 127,500 & \text { Last year's accruals } & \$ 20,000 \\\text { Last year's profit margin }=\mathrm{PM} & 20.0 \% & \text { Target payout ratio } & 25.0 \%\end{array}$
?

• A) -$14,820
• B) -$23,180
• C) -$19,000
• D) -$21,280
• E) -$20,520

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Definitions:

Perpetual Inventory System

An inventory management approach where updates to inventory records are made in real-time following each transaction or event.

LIFO

A stock valuation method that assumes the items most recently purchased or produced are sold first, impacting cost of goods sold and inventory value.

Inventory Turnover

A ratio that shows how many times a company has sold and replaced its inventory over a certain period, indicating efficiency in managing stock.

Year 2

Year 2 commonly refers to the second year of a particular context, such as a company's operations, a multi-year study, or an educational program.