Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company's sales in 2020 were $1.5 million and its total spontaneous assets were $4.9 million. Also in the same year, the firm's spontaneous liabilities

image text in transcribed
A company's sales in 2020 were $1.5 million and its total spontaneous assets were $4.9 million. Also in the same year, the firm's spontaneous liabilities consisted of $7.1 million in wages payable, $2.2 million in accounts payable, and $5.5 million in accrued expenses. The firm's profit margin is 1.7% and its dividend payout ratio is 7.9%. The balance sheet at year-end is similar in percentage of sales to that of previous years and this will continue in the future. Required: What is the percentage increase in sales that the company must achieve in order to avoid raising funds externally? Note: The term "k" is used to represent thousandst* $1,000). % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES, FOR EXAMPLE: 17231

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What companies or organizations would you want to work at? Why?

Answered: 1 week ago