What is booth additional funds needed for the coming year

Assignment Help Finance Basics

Reference no: EM13295561

The Booth Company's sales are forecasted to double from $1,000 in 2012 to $2,000 in 2013. Here is the December 31, 2012, 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 2012, but its current assets were at their proper levels in relation to sales. Spontaneous liabilities and 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 8% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year?

Reference no: EM13295561

Questions Cloud

Should a firm normally have more confidence : Diaz Camera Company is considering two investments, both of which cost $10,000. The cash flows are as follows: Year1, Project A $6,000, Project B $5,000 - Year 2, Project A $4,000, Project B $3,000 Year 3, Project A, $3,000, Project B $8,000.

At a certain temperature and the root mean square speed : At a certain temperature, the root mean square speed of CH4 molecules in 1610 km/h. What is the root mean square speed of CO2 molecules at the same temperature

Find the final velocity of the ball and its direction : Quarterback passed a ball to a receiver while running at 1.5 m/s forward. The ball was released at a height of 2.5 meters with an angle of 45 degrees, Find the final velocity of the ball and its direction

Design the sequential circuit specified by the state table : List a state table for JK flip-flop, using Q as the present and next state and J and K as inputs. design the sequential circuit specified by the state table.

What is booth additional funds needed for the coming year : Booth's after-tax profit margin is forecasted to be 8% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year?

Calculate the pulse width ton for average value of counter : a cnostant freqency step down chopper system us used for thecontrol of dc series motor from 550v. The armature and fieldresistances are 0.03Ω and 0.02Ω respectively, the average current in the motor circuit being 300A

Preparation of a schedule of cost of goods : Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold for last years accounts.Explain why some items have been excluded from the Schedules.

Explain entropy change of the system and of the surrounding : Find the entropy change of the system and of the surroundings if 3.000mole of water freezes reversibly at 1.000atm. the freezing temperature is 0.00C at this pressure, and the specific enthalpy change of fusion is equal to 79.7cal/gm at this tempe..

What information is needed when filing an insurance claim : 1. Why is it important to file life insurance claims as soon as possible? 2. How can you find out about a deceased loved one's insurance coverage? 3. What information is needed when filing an insurance claim?

User Account

All Pages