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:

Logical Syllogisms

Reasoning structures that use deductive reasoning from two premises to arrive at a logical conclusion.

Make-Believe Animals

Fictional or imaginary creatures often found in stories, myths, or children's play, characterized by whimsical or fantastical features.

Gestalt Principle

A theory in psychology that proposes the human brain organizes visual elements into groups or unified wholes when certain principles are applied, such as similarity, proximity, continuity, and closure.

Similarity

Similarity refers to the cognitive process of recognizing shared attributes or characteristics among different objects, ideas, or phenomena, often facilitating categorization and understanding.