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A firm determines that sales will rise from $500,000 to $750,000 next year. The relationship of variable assets to sales is 50% and the
A firm determines that sales will rise from $500,000 to $750,000 next year. The relationship of variable assets to sales is 50% and the relationship of variable liabilities to sales is 20%. The firm has a 10% profit margin and a dividend payout ratio of 30%. What is the level of new funds required?
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To determine the level of new funds required we need to calculate the increase in variable assets an...
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
6th edition
978-0070968295, 9781259087462, 978-0071051415
