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Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2016 to...

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Finance

Additional Funds Needed The Booth Company's sales are forecastedto double from $1,000 in 2016 to $2,000 in 2017. Here is theDecember 31, 2016, balance sheet: Cash $ 100 Accounts payable $ 50Accounts receivable 200 Notes payable 150 Inventories 200 Accruals50 Net fixed assets 500 Long-term debt 400 Common stock 100Retained earnings 250 Total assets $1000 Total liabilities andequity $1000 Booth's fixed assets were used to only 50% of capacityduring 2016, but its current assets were at their proper levels inrelation to sales. All assets except fixed assets must increase atthe same rate as sales, and fixed assets would also have toincrease at the same rate if the current excess capacity did notexist. Booth's after-tax profit margin is forecasted to be 8% andits payout ratio to be 70%. What is Booth's additional funds needed(AFN) for the coming year? Round your answer to the nearestdollar.

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