Im trying to solve this problem #1 on my homework. Im not sure what is forecasted for the fixed assets how to put that into an equation for AFN. Like it says thatitonly used 50% of fixed assets, but does that matter when we plug it in? Also, where it saysand fixed assets would also have to increase at the same rate if the current excess capacity did not exist Im not sure what to do with that. If you can explain how to do that it would be great. Thanks! The Booth Co.'s sales are forecasted to double from $1,000 in 2015 to $2,000 in 2016. Here is the Dec. 31, 2015 Balance Sheet: Cash $100 A/R 200 Inventories. 200 Net FA 500 Total Assets $1,000 A/P 50 NP 150 Accruals 50 Long-term Debt 400 Common Stock 100 Retained Earnings 250 Total liabilities and equity $1,000 --Booth's FA were used to only 50% capacity during 2015, but its CA were at their proper levels in relation to sales. All assets except FA must increase at the same rate as sales, and FA 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 6% and its payout ratio to be 35%. What is Booth's additional funds needed for the coming year?