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1. Fujairarh Gas Stations (FGS) Inc, expects sales to increase from $3,575,000 to AED 4,575,000 next year. Fujairarh Gas Stations (FGS) believes that net assets

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1. Fujairarh Gas Stations (FGS) Inc, expects sales to increase from $3,575,000 to AED 4,575,000 next year. Fujairarh Gas Stations (FGS) believes that net assets (Assets - Liabilities) will represent 40 percent of sales. His firm has an 6 percent return on sales and pays 35 percent of profits out as dividends. a. What effect will this growth have on funds? [ 2 Marks]

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