(Solved): e. $2,000 Clear my choice The AHAI Company's balance sheet of December 31, 2018 is given below: Sa ...

e. $\$2,000$ Clear my choice The AHAI Company's balance sheet of December 31, 2018 is given below: Sales during the past year were $\$1,000$, and they are expected to increase to $\$2,000$ during 2019 . AHAl's fixed assets were used to $60\%$ of capacity during 2018 , but its current assets were at their proper levels. All assets except fixed assets increase at the same rate as sales, and fixed assets would also increase at the same rate if the current excess capacity did not exist. Assume that AHAI's profit margin will remain constant at 4.25 percent and that the company will continue to pay out 40 percent of its earnings as dividends. What amount of additional funds (AFN) will be needed during the next year assuming the company would use up the excess capacity before adding fixed assets? a. $\$6$ b. $\$7$ c. $\$40$ d. $\$5$ e. $\$8$