You are the owner of a small business which has the following statement of financial position: Fixed and current assets are fully utilised, and the sales/assets and sales/spontaneous liabilities ratios will remain constant.Next year you expect sales to increase by 50 percent.You also expect to retain R2,000 of next year's earnings within the firm.What is next year's additional external funding requirement, i.e., what is your firm's AFN?

Question

You are the owner of a small business which has the following statement of financial position:  Fixed and current assets are fully utilised, and the sales/assets and sales/spontaneous liabilities ratios will remain constant.Next year you expect sales to increase by 50 percent.You also expect to retain R2,000 of next year's earnings within the firm.What is next year's additional external funding requirement, i.e., what is your firm's AFN?

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The Answer of You are the owner of a small business which has the following statement of financial position:  Fixed and current assets are fully utilised, and the sales/assets and sales/spontaneous liabilities ratios will remain constant.Next year you expect sales to increase by 50 percent.You also expect to retain R2,000 of next year's earnings within the firm.What is next year's additional external funding requirement, i.e., what is your firm's AFN?

You Are the Owner of a Small Business Which Has