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Bondage Supply Company expects sales next year to be $750,000. Inventory and accounts receivable will have to be increased by $120,000 to accommodate this sales
Bondage Supply Company expects sales next year to be $750,000. Inventory and accounts receivable will have to be increased by $120,000 to accommodate this sales level. The company has a steady profit margin of 10 percent, with a 30 percent dividend payout. |
How much external funding will Bondage Supply Company have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing. |
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