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Q9 Networks Is a Leading Provider of Outsourced Data Center

Question 69

Multiple Choice

Q9 Networks is a leading provider of outsourced data center infrastructure such as web-servers and data storage. Use the equation approach and the financial data in the table to calculate additional funds needed (AFN) in Year 6. Selected Financial Statement Values and Ratios
Q9 Networks As of December 31, Year 5 ($ 000's)
 Total Assets $113,104 Fixed Assets 36,757 Assets that Change with Sales 41,803 Total Revenues (Year 5)  37,829 Total Revenues (Year 6)  45,395 Change in Revenues 7,566 Total Liabilities 11,779 Liabilities that Change with  Sales 7,688 Profit Margin 0.27% Dividend Payout Ratio 0%\begin{array} { | c | c | } \hline \text { Total Assets } & \$ 113,104 \\\hline \text { Fixed Assets } & 36,757 \\\hline \text { Assets that Change with Sales } & 41,803 \\\hline \text { Total Revenues (Year 5) } & 37,829 \\\hline \text { Total Revenues (Year 6) } & 45,395 \\\hline \text { Change in Revenues } & 7,566 \\\hline \text { Total Liabilities } & 11,779 \\\hline \begin{array} { c } \text { Liabilities that Change with } \\\text { Sales }\end{array} & 7,688 \\\hline \text { Profit Margin } & 0.27 \% \\\hline \text { Dividend Payout Ratio } & 0 \% \\\hline\end{array}


A) -$2,292
B) -$1,301
C) $2,220
D) $6,702
E) $7,081

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