The Booth Company's sales are forecasted to double from $1,000 in 2018 to $2,000 in...
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Accounting
The Booth Company's sales are forecasted to double from $1,000 in 2018 to $2,000 in 2019. Here is the December 31, 2018, 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 2018, 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 5% and its payout ratio to be 55%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.
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