The Booth Companys sales are forecasted to double from $1,000 in 2013 to $2,000 in 2014. Below 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	$1,000		Total liabilities and Equity	$1,000

Assume Booth is at operating at full capacity and its spontaneous liabilities grow with sales. Further, Booths after-tax profit margin is forecasted to be 5% and its payout ratio to be 60%. With this information, answer the following questions.

1. What is Booths additional funds needed (AFN) for the coming year?
2. Now assume that the company pays no dividends. Assume that all other numbers, including sales, remain the same. Under this assumption, what would be the additional funds needed for the coming year? Why is this AFN different from the one in part a?
3. Define the self-supporting growth rate and compute it for this example. In doing so, return to the assumption that the payout ratio is 60%.
4. Again, return to the assumption that the payout ratio is 60%. Now consider that while the current assets are being used efficiently, the fixed assets are only being used at 65.3% capacity. What will Booths AFN needs be under this scenario? Why is it different than the one in part a?