The Bouchard Company's sales are forecasted to increase from $500 for last year to $ 1,000 for next year. Here is the last year's balance sheet as of December 31:

Cash		$ 50		Accounts payable		$25
Receivables		100		Notes payable		75
Inventory		100		Accruals		25
Total current assets		$250		Total current liabilities		$125
				Long-term debt		200
				Common stock		50
Net Fixed Assets		250		Retained earnings		125
Total assets		$500		Total liabilities and equity		$500

Bouchard's fixed assets were used to only 50 percent of capacity during last year, but its current assets were at their proper levels. All assets, except fixed assets, should be a constant percentage of sales, and fixed assets would also increase at the same rate if the current excess capacity did not exist. Bouchard's after-tax profit margin is forecasted to be 8 percent, and its payout ratio will be 40 percent. What is Bouchard's additional funds needed (AFN) for the next year?

• A. a. $102
• B. b. $152
• C. c. $197
• D. d. $167
• E. e. $183