Your Firm Recorded Sales for the Most Recent Year of $10

Multiple Choice

Your firm recorded sales for the most recent year of $10 million generated from an asset base of $7 million, producing a $500,000 net income. Sales are projected to grow at 20%, causing spontaneous liabilities to increase by $200,000. In the most recent year, $200,000 was paid out as dividends, and the current payout ratio will continue in the upcoming years. What is your firm's AFN?

A) $200,000
B) $600,000
C) $840,000
D) $960,000
E) $1,400,000