December Balance Sheet
Accounts receivable
Net fixed assets
Total assets


Additional Funds Needed
The RR companies sales are forecasted to double from $1,000 in 2012 to $2,000 in 2013. Here is the December 31, 2012, balance

Accounts payable
Notes payable
Long-term debt
Common stock
Retained earnings
Total liabilities and equity


What is RR additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.

The RR companies 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 f the current excess capacity did not exist. RR after-tax profit margin is forecasted to be 8% and its payout ratio to be 55%.