Please do question 5-7, thanks for detailed explanation

5-6 The Booth Company's sales are forecast to increase from $1,000 in 2015 to $2,000 in 2016. Additional Here is the December 31, 2015, balance sheet: Funds Needed 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 2015, 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? 5-7 Based on the information in Problem 5-6, assume that Booth has just completed a review Additional of its net operating working capital policies and found that it can reduce its DSO to 60 and Funds Needed achieve an inventory turnover of 4.57X without impacting sales or profits, based on a cost of goods sold of $1,600. Recalculate the additional funds Booth requires to achieve its growth target. b. Assume Booth needed $360 in additional funds for Problem 5-6. Using your answer in part a, how much less will Booth pay in future interest costs, annually, given a 9% interest rate on all additional funds borrowed? a