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Please do b only with explanation and calculations The Booth Company's sales are forecasted to increase from $1,000 in 2022 to $2,000 in 2023. Here
Please do b only with explanation and calculations
The Booth Company's sales are forecasted to increase from $1,000 in 2022 to $2,000 in 2023. Here is the December 31,2022 balance sheet: Booth's fixed assets were used to only 50% capacity during 2022, 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%. (a) What is Booth's additional funds needed (AFN) for the coming year? (b) How does the answer to (a) change if fixed assets were used at 80% capacity instead of 50% capacityStep by Step Solution
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