Broussard Skateboard%u201

Broussard Skateboard%u201

Broussard Skateboard%u2019s sales are expected to increase by 15% from $8 million in2013 to $9.2 million in 2014. Its assets totaled $5 million at the end of 2013.Broussard is already at full capacity, so its assets must grow at the same rate asprojected sales. At the end of 2013, current liabilities were $1.4 million, consistingof $450,000 of accounts payable, $500,000 of notes payable, and $450,000 ofaccruals. The after-tax profit margin is forecasted to be 6%, and the forecastedpayout ratio is 40%. Use the AFN equation to forecast Broussard%u2019s additional fundsneeded for the coming year.

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