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Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2019 to $9.66 million in 2020. Its assets totaled $4 million at
Broussard Skateboard's sales are expected to increase by 15% from $8.4 million in 2019 to $9.66 million in 2020. Its assets totaled $4 million at the end of 2019 Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 60%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. $ 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: $ 100 $ 50 Cash Accounts receivable 200 150 Inventories 200 50 Net fixed assets 500 Accounts payable Notes payable Accruals Long-term debt Common stock Retained earnings Total liabilities and equity 400 100 250 Total assets $1,000 $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 5% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $
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