Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Question: Additional Funds Needed 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 6% and its payout ratio to be 35%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92771538

Have any Question?


Related Questions in Basic Finance

The following information relates to ram

The following information relates to RAM Corporation:                Accounts receivable                     $160,000                Total credit sales                        $2,500,000                Accounts payable    ...

Part 1 trade receivables1 for purposes of answering the

Part 1: Trade Receivables 1. For purposes of answering the questions in this part, only consider "Trade Receivables." a. What is the amount of Trade Receivables that customers owe Coors at the end of fiscal 2002? b. What ...

Youre prepared to make monthly payments of 210 beginning at

You're prepared to make monthly payments of $210, beginning at the end of this month, into an account that pays 6.2 percent interest compounded monthly. How many payments will you have made when your account balance reac ...

When restating nonmonetary asset accounts the price index

When restating nonmonetary asset accounts, the price index at the current date represents the price index from which the conversion is made, and the price index at the time of acquisition represents the index to which th ...

The satellite shoppe has current sales per share of 840 the

The Satellite Shoppe has current sales per share of $8.40. The sales per share are expected to increase at an annual rate of 12%. The historical P/E ratio is 16.2 and the historical P/S ratio is 7.6. What is the expected ...

Please explain the united states has experienced continuous

Please explain, The United States has experienced continuous current account deficits since the early 1980s. What do you think are the main causes for the deficits and what would be the consequences of continuous US curr ...

What is the price of a 1000 par value bond with an 8 coupon

What is the price of a $1,000 par value bond with an 8% coupon rate paid semiannually, if the bond is priced to yield 4% and it has 15 years to maturity?

Cathy buys a house her principal residence for 2500000

Cathy buys a house (her principal residence) for $2,500,000, paying $500,000 down and borrowing the other $2,000,000 at 5% interest. If her interest expense for the year is $100,000, how much will her maximum deduction f ...

What are the ways that it can help comply with legal

What are the ways that IT can help comply with legal requirements and social responsibilities surrounding the sales of alcohol?

You are given the following quotesusnbspdollarmexican

You are given the following quotes: U.S. dollar/Mexican Peso = 0.4637 U.S. dollar/Australian Dollar = 0.6921 U.S dollar/Chinese Yuan = 0.1825 What is the Chinese Yuan/Australian Dollar cross rate? How to find net float i ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As