What is booth additional funds needed

Reference no: EM13276212

The Booth Company's sales are forecasted to double from $1,000 in 2010 to $2,000 in 2011. Here is the December 31, 2010, 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 2010, 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 7% and its payout ratio to be 70%. What is Booth's additional funds needed (AFN) for the coming year?

Reference no: EM13276212

Questions Cloud

Calculate the project coefficient of variation : Calculate the project's standard deviation. Round your answer to the nearest dollar. $ Calculate the project's coefficient of variation. Round your answer to two decimal places.

What is the stock expected price 5 years from now : What is the stock's expected price 5 years from now? Choose one answer. A. $44.46 B. $41.20 C. $42.26 D. $40.17What is the stock's expected price 5 years from now? Choose one answer. A. $44.46 B. $41.20 C. $42.26 D. $40.17

Calculate min number of pn bits required for each frequecy : Calculate the minimum number of PN bits required for each frequency hop for an FHSS system that employs a total bandwidth of 800 MHz and an individual channel bandwidth of 200 Hz. If this system uses MFSK modulation in conjunction with FHSS

Compute the amount of acid that would be left : Calculate the amount of acid that would be left in the water solution after four 20-mL extractions with ether. Do the same calculation, using one 80-mL extraction with ether, to determine which method is more efficient.

What is booth additional funds needed : Booth's after-tax profit margin is forecasted to be 7% and its payout ratio to be 70%. What is Booth's additional funds needed (AFN) for the coming year?

Determine the two residues at the complex conjugate poles : A) Determine the individual residues at the single poles at s = 0 and at s = -1 B)determine the two residues at the complex conjugate poles C) using the inverse laplace transform of the single poles and the complex conjugate poles determine the time..

Describe interfaces you interact with on a daily basis : Describe three interfaces you interact with on a daily basis and analyze each interface you identified in Question one (1) and assess how it adheres to Mandel's five (5) golden rules.

Explain a physical interpretation of the behavior : the boyle temperature is the temperature at which the coefficient b is zero. Therefore, a real gas behaves like an ideal gas at this temperature. (a) Give a physical interpretation of this behavior.

What conclusions can you draw from this information : You have taken the following information from a firm's financial statements. As an investor in the firm's debt instruments, you are concerned with its liquidity position and its use of financial leverage.

User Account

All Pages