Question
Consider the following information for the percentage of sales approach: Sales = $3M, NI = $0.4M, Div = $0.1M Total Asset = $4M Current Liability
Consider the following information for the percentage of sales approach:
Sales = $3M, NI = $0.4M, Div = $0.1M
Total Asset = $4M
Current Liability $0.2M
Long-term debt = $1M
Equity = $2.8M
If sales increase by 25% (and NI, assets, and CL increase at the same rate), calculate the external financing needed.
0.575
0.400
0.437
0.485
0.521
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Essentials Of Accounting For Governmental And Not-for-Profit Organizations
Authors: Paul A Copley
11th Edition
0078025451, 9780078025457
