Chua Chang & Wu Inc

question 5

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? Last year's sales = S₀
$200,000
Last year's accounts payable
$50,000
Sales growth rate = g
40%
Last year's notes payable (to bank)
$15,000
Last year's total assets = A₀
$135,000
Last year's accruals
$20,000
Last year's profit margin = M
20) 0%
Target payout ratio
25) 0%

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

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Definitions:

Psychological Dependence

A condition characterized by a perceived need to continue using a substance due to emotional or mental attachment rather than physical dependence.

Delta Waves

A type of high amplitude brain wave found in humans, typically associated with deep non-REM sleep.

EEG Recordings

Graphical recordings of the electrical activity of the brain obtained through electrodes placed on the scalp, used in neurological diagnosis and research.

Biological Cycles

Natural rhythms in living organisms, such as circadian rhythms, that regulate physiological processes.