Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. ebook additional funds needed the booth company's

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

50.1K

Verified Solution

Question

Finance

eBook

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 $ 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 8% 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.

$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Sine Graphs Determine the amplitude of the following Sine graph A ww O 1 5...

Biology
1.2K views

In the mechanism of action of peptide hormones which one is the next step that...

Geometry
1.2K views

The following table shows the actual demand observed over the last 11 years 3 4...

Geometry
1.2K views

4 Given Prove O 1 2 3 4 A B C m AOB m 1...

Basic Math
1.2K views

ent for fixed assets and 50 000 for net working capital The fixed assets will...

Basic Math
1.2K views

Anna wants to rent movies from either Service A or Service B Service A charges...

Calculus
1.2K views

17 Evaluate log 18 What is the answer a 1 8343 b 3460 c 2...

Accounting
1.2K views

If the effective marginal tax rate is 25% and a firm can issue tax-free bonds...

Accounting
1.2K views

Damerly Company (a Utah employer) wants to give a holiday bonus check of $350 to...

Accounting
1.2K views

List three reasons why income reporting is important to our economic society.

Accounting
1.2K views

explain Fiscal Year / give example explain Financial Year /give example

Accounting
1.2K views

Corey, a nonexempt salesperson with Verent Enterprises, earns a base annual salary of $34,600 with...