What is booth additional funds needed

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Reference no: EM133070729

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      

$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

$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 6% 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

Reference no: EM133070729

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