a search this course End-of-Chapter Problems-Corporate Valuation and Financial P

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a search this course End-of-Chapter Problems-Corporate Valuation and Financial Planning estions Check My Work (No more tries available) Additional Funds Needed O 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 Accounts receivable Inventories Net fixed assets 100 Accounts payable 50 150 50 400 100 250 $1,000 200 200 500 Notes payable Accruals Long-term debt Common stock Retained earnings Total liabilities and equity Total assets $1,000 sales. All assets except fixed assets must capacity did not exist. Booth's after-tax profit margin 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 increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess is forecasted to be 7% 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 dolar. $ 337 Check My Work (No more tries available) OIcon Ko

Explanation / Answer

BALANCE SHEET 2018 Basis of projection Proforma 2019 Current assets 100 50% 115 Accounts receivable 200 50% 300 Inventories 200 50% 300 Total current assets 500 715 Net fixed assets 500 500 TOTAL ASSETS 1000 1215 Accounts payable 50 50% 75 Notes payable 150 150 Accruals 50 50% 75 Total current liabilities 250 300 Long term debt 400 400 Common stock 100 100 Retained earnings 250 +63 313 1000 1113 EFN 102 INCOME STATEMENT Net Income (7% of 1000) 70 7% of 2000 140 Dividend (55%) 39 77 Retained earnings 32 63

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