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(5) Calculate the additional financing needed to meet the projected increase in sales. Assume that profit margin and asset turnover will remain the same as
(5) Calculate the additional financing needed to meet the projected increase in sales. Assume that profit margin and asset turnover will remain the same as it was in 2022. Profit Margin = NI/Sales. Asset Turnover = Sales/Assets | ||||
| 2022 | projected | ||
Sales | 2000 | 3000 | ||
PM | 5.00% | |||
NI | 100 | |||
payout ratio | 30.0% | |||
a) What is the Dividend? | ||||
b) What is the Retained Earnings? | ||||
2022 | projected | |||
Total Assets | 1200 | |||
Operating Liab | 80 | 100 | ||
LTD | 500 | |||
Shareholders Equity | 620 |
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