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please show AFN formulas :) Additional Funds Needed Booth Company's sales are forecast to increase from $1,000 in 2021 to $2,000 in 2022. Here is
please show AFN formulas :)
Additional Funds Needed Booth Company's sales are forecast to increase from $1,000 in 2021 to $2,000 in 2022. Here is the December 31,2021 , balance sheet: Booth's fixed assets were used to only 50% of capacity during 2021 , 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 Step by Step Solution
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