momneedinghelp
Nov 8, 2009, 07:31 AM
Electric Chair and Table Co. expects sales next year to be $10,000,000. Inventory
and accounts receivable will increase by $1,400,000 and accounts payable will
increase by $300,000. The company has a profit margin of 9 percent and pays
out 30 percent of profits in dividends. How much external financing will be nec-
essary? Assume there is no increase in liabilities other than that which will occur
with the external financing.
and accounts receivable will increase by $1,400,000 and accounts payable will
increase by $300,000. The company has a profit margin of 9 percent and pays
out 30 percent of profits in dividends. How much external financing will be nec-
essary? Assume there is no increase in liabilities other than that which will occur
with the external financing.