Question
The Booth Company's sales are forecasted to double from $1,000 in 2013 to $2,000 in 2014. Here is the December 31, 2013, balance sheet: Cash
The Booth Company's sales are forecasted to double from $1,000 in 2013 to $2,000 in 2014. Here is the December 31, 2013, balance sheet:
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 | $1000 | Total liabilities and equity | $1000 |
Booth's fixed assets were used to only 50% of capacity during 2013, 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 exit. Booth's after =tax profit margin is forecasted to be 5% and its payout ratio to be 60%. What is Booth's aditional finds needed (AFN) for the coming year?
****** The answer is AFN $360******** how can I solve this in excel?
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