What is booth additional funds needed for the coming year

Assignment Help Finance Basics
Reference no: EM13295561

The Booth Company's sales are forecasted to double from $1,000 in 2012 to $2,000 in 2013. Here is the December 31, 2012, 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 2012, but its current assets were at their proper levels in relation to sales. Spontaneous liabilities and 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 exist. Booth's after-tax profit margin is forecasted to be 8% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year?

 

Reference no: EM13295561

Questions Cloud

Should a firm normally have more confidence : Diaz Camera Company is considering two investments, both of which cost $10,000. The cash flows are as follows: Year1, Project A $6,000, Project B $5,000 - Year 2, Project A $4,000, Project B $3,000 Year 3, Project A, $3,000, Project B $8,000.
At a certain temperature and the root mean square speed : At a certain temperature, the root mean square speed of CH4 molecules in 1610 km/h. What is the root mean square speed of CO2 molecules at the same temperature
Find the final velocity of the ball and its direction : Quarterback passed a ball to a receiver while running at 1.5 m/s forward. The ball was released at a height of 2.5 meters with an angle of 45 degrees, Find the final velocity of the ball and its direction
Design the sequential circuit specified by the state table : List a state table for JK flip-flop, using Q as the present and next state and J and K as inputs. design the sequential circuit specified by the state table.
What is booth additional funds needed for the coming year : Booth's after-tax profit margin is forecasted to be 8% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year?
Calculate the pulse width ton for average value of counter : a cnostant freqency step down chopper system us used for thecontrol of dc series motor from 550v. The armature and fieldresistances are 0.03Ω and 0.02Ω respectively, the average current in the motor circuit being 300A
Preparation of a schedule of cost of goods : Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold for last years accounts.Explain why some items have been excluded from the Schedules.
Explain entropy change of the system and of the surrounding : Find the entropy change of the system and of the surroundings if 3.000mole of water freezes reversibly at 1.000atm. the freezing temperature is 0.00C at this pressure, and the specific enthalpy change of fusion is equal to 79.7cal/gm at this tempe..
What information is needed when filing an insurance claim : 1. Why is it important to file life insurance claims as soon as possible? 2. How can you find out about a deceased loved one's insurance coverage? 3. What information is needed when filing an insurance claim?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the financial break-even point for the project

The appropriate discount rate is 10 percent. What is the financial break-even point for the project?

  Trends in global value chain management

What are some contemporary trends in global value chain management? How does the use of a global monetary unit (e.g., Euro or single currency) affect global value chain management?

  What is the projects pi

Bill expects aftertax cash inflows of $91,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 11 per..

  Find the stock price at the end of three years

Suppose you are planning an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00).

  Computation of stock price and market value

Computation of stock price and Market value and market capitalization and beta and How many shares of stock does Dell have outstanding

  Financial institutions and markets

FIN2000, Financial Institutions and Markets: -  Case Studies in Financial Crises, “Financial Market Essentials”,(2011) McGraw and Hill (this is available on the portal under assessments).

  How much annual income will he need from his employer plan

If he needs 80 percent of his income to maintain his standard of living upon retirement, how much annual income will he need from his employer's plan and from his own planning when he retires? (Show all work.)

  What was the market risk premium during these 10 years

The average annual return on the S& P 500 Index from 1986 to 1995 was 15.8 percent. The average annual T- bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years?

  Interest rates fluctuate in the economy over various cycles

Interest rates fluctuate in the economy over various cycles. When interest rates are low, organizations may decide to issue debt as the cost of debt is low. However, this is likely to happen only with financially strong organizations because inter..

  Financing strategy for renewable energy

What is your financing strategy for the project? Consider construction-period financing and long-term financing alternatives and do you recommend asset-backed financing or traditional portfolio financing

  Income statement

I need to figure out the statement of retained earnings. I have earnings end of year, 12,979 revenues 25,329, net interest expense, 453 income taxes 853 other income net 137 dividends paid.

  What was the gain on the reacquisition of the bonds

Interest is payable semiannually, on April 1 and October 1, and the bonds mature on April 1, 20X6. On February 1, 20X2, $1,000 of these bonds are reacquired at 108 percent and accrued interest. Required: What was the gain (loss) on the reacquisiti..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd