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Charles-Baker, International, Inc. expects sales to increase to $36 million next year from $27 million this year. Its current assets are $9 million, accounts payable
Charles-Baker, International, Inc. expects sales to increase to $36 million next year from $27 million this year. Its current assets are $9 million, accounts payable is $2.7 million, fixed assets are $9 million, long-term debt is $3.6 million, owners' equity is $11 million, and the earnings after tax-to-sales ratio is 5%. Current assets and accounts payable can be assumed to increase in the same proportion as sales. Other current liabilities are expected to say the same. Net fixed assets will increase by $1 million in the firm plans to pay $800,000 as dividends. A. What areCharles-Baker, International, Inc.'s total financing needs for next year? B. How much money with the firm have to borrow to finance its needs
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