Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer asap pls High in the Sky is looking to expand its business and therefore requires additional financing needs to support this growth. Last year

answer asap pls

image text in transcribed

High in the Sky is looking to expand its business and therefore requires additional financing needs to support this growth. Last year revenues were $0.5 million, the net profit was $20,000, the investment in assets was $1 million, payables and accruals were $200,000, and equity at the end of the year was $650,000. The venture did not pay out any dividends and does not expect to pay dividends in the foreseeable future. What would be your estimate of the additional funds needed next year to support a 10% percent increase in sales? $77,000 Zero (no additional funds required). $50,000. $50,000 $22,000 $58,000 $25,000 $58,000

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 Finance questions

Question

a. Price falls and demand is inelastic.

Answered: 1 week ago