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Answer
Some types of liabilites are grow proportionally to sales which called spontaneous liabilities
Next Year g 10%
Sales $ 11,000.00
Balance Sheet : Liabilities Refer to growth which 10%, the
Account Payable $ 1,100.00 projected spontaneous liabilities
are as follows:
Notes Payable $ 2,200.00 Account Payable: $1100
Accruals $ 1,100.00 Notes Payable: $2200
Total Current Liabilities $ 4,400.00 Accruals: $1100
Long Term Bonds $ 2,000.00
Total Liabilities $ 6,400.00
Common Stock $ 1,000.00
Retained Earnings $ 3,000.00
Total Common Equity $ 4,000.00
Total Liabilities & Equity $ 10,400.00
12-6
2019 2020 AFN for coming years?
Sales $ 1,000.00 $ 2,000.00
Answer
AFN Formula are as follows:
A0 $ 500.00 L0 $ 100.00
S0 $ 1,000.00 M 5%
S1 $ 2,000.00 POR 60%
Delta S $ 1,000.00
AFN $ 299.60
AFN for coming years?