Question
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
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?
Multiple choice question.
$122,500
$12,500
$0
$22,500
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Management Accounting
Authors: Pauline Weetman
2nd Edition
0273718452, 978-0273718451
