Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet: $ 100 Accounts payable $ 50 150 200 Notes payable 200 Accruals 50 500 400 Long-term debt FIL Common stock 100 Retained earnings 250 $1,000 Total liabilities and equity $1,000 Booth's fixed assets were used to only 50% of capacity during 2019, 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 3% and its payout ratio to be 60%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ Cash Accounts receivable Inventories Net fixed assets Total assets
Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet: $ 100 Accounts payable $ 50 150 200 Notes payable 200 Accruals 50 500 400 Long-term debt FIL Common stock 100 Retained earnings 250 $1,000 Total liabilities and equity $1,000 Booth's fixed assets were used to only 50% of capacity during 2019, 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 3% and its payout ratio to be 60%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ Cash Accounts receivable Inventories Net fixed assets Total assets
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Vijay shiyal
Transcribed Image Text:Additional Funds Needed
The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet:
Cash
Accounts receivable
Inventories
Net fixed assets
$50
150
50
400
100
250
Total assets
$1,000
$1,000
Booth's fixed assets were used to only 50% of capacity during 2019, 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 3% and its payout ratio to be 60%. What
is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.
$
$100
200
200
500
Accounts payable
Notes payable
Accruals
Long-term debt
Common stock
Retained earnings
Total liabilities and equity
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