Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet: Cash   $  100   Accounts payable   $   50 Accounts receivable   200   Notes payable   150 Inventories   200   Accruals   50 Net fixed assets   500   Long-term debt   400         Common stock   100         Retained earnings   250  Total assets   $1000    Total liabilities and equity   $1000 Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 5% and its payout ratio to be 65%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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Additional Funds Needed

The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet:

Cash   $  100   Accounts payable   $   50
Accounts receivable   200   Notes payable   150
Inventories   200   Accruals   50
Net fixed assets   500   Long-term debt   400
        Common stock   100
        Retained earnings   250
 Total assets   $1000    Total liabilities and equity   $1000

Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 5% and its payout ratio to be 65%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.

$

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