Bookmark After adding a new line of widgets, Worldwide expectsall assets and current liabilities to shrink with sales. thecompany has sales for the year just ended of $20 million. Thecompany also has a profit margin of 20 percent, a return ratio of25 percent, and expected sales of $18 million next year.
Assets Liabilities and Equity
Current assets$2,500,000 Current Liabilites $1,250,000
Fixed Assets $3,500,00 Long term debt $1,500,000 Equity $3,250,000
Total liabilities and equity $6,000,000
Worldwide Widgets shows the following on its balance sheet. Whatamount of additional funds (AFN) will worldwide need from externalsources to fund the expected growth? What does the AFN show?