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Galehouse Gas Stations Inc. expects sales to increase from $1,550,000 to $1,750,000 next year. Galehouse believes that net assets (Assets Liabilities) will represent 50 percent

Galehouse Gas Stations Inc. expects sales to increase from $1,550,000 to $1,750,000 next year. Galehouse believes that net assets (Assets Liabilities) will represent 50 percent of sales. His firm has an 8 percent return on sales and pays 45 percent of profits out as dividends. a. What effect will this growth have on funds? The cash balance will decrease by 23000 . b. If the dividend payout is only 25 percent, what effect will this growth have on funds? The cash balance will increase by 35000

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