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The Bouchard Company's sales are forecasted to increase from $500 in 2007 to $1000 in 2008. Here is the December 31, 2007 balance sheet: Cash

The Bouchard Company's sales are forecasted to increase from $500 in 2007 to $1000 in 2008. Here is the December 31, 2007 balance sheet:

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 liab/equity

500

Bouchard's fixed assets were used to only 50 percent of capacity during 2007, but its current assets were at their proper levels. All assets except fixed assets should be at 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 for the current year?

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