AFN Equation Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2018 to $9.2 million in 2019. Its assets totaled $5 million at the end of 2018. Broussard is already at...

AFN Equation
Broussard Skateboard’s sales are expected to increase by 15% from $8 million
in 2018 to $9.2 million in 2019. Its assets totaled $5 million at the end
of 2018.
Broussard is already at full capacity, so its assets must grow at the same
rate as projected sales. At the end of 2018, current liabilities were $1.4 million,
consisting of $450,000 of accounts payable, $500,000 of notes payable, and
$450,000 of accruals. The after-tax profit margin is forecasted to be 6%,
and the forecasted payout ratio is 40%. Use the AFN equation to forecast
Broussard’s additional funds needed for the coming year