(Answered) Christies sales were 500000 during 2017 and its year-end

Finance

Christie's sales were $500,000 during 2017, and its year-end assets were $400,000. For 2018, sales are expected to grow by 5% ,and since the firm is operating at full capacity, its assets must grow in proportion to sales. Its 2017 current liabilities consisted of $60,000 of accounts payable, $20,000 of notes payable, and $50,000 of accruals. Its after-tax profit margin is forecasted to be 15%, and the firm plans to pay out 20% of its earnings. Based on the AFN equation, what is the firm's additional funds needed (AFN) for 2018?

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