The Booth Company’s sales are forecasted to increase from $1,000 in 2007 to $2,000,in 2008. Here is the December 31, 2007, 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 2007, but its current,assets were at their proper levels. All assets except fixed assets increase at the,same rate as sales, and fixed assets would also 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 will be 60%. What is Booth’s additional funds needed,(AFN) for the coming year?,
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