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Galehouse Gas Stations Inc. expects sales to increase from $1,620,000 to $1820.000 next year Galehouse believes that net assets (Assets -Liabilities will represent 40 percent
Galehouse Gas Stations Inc. expects sales to increase from $1,620,000 to $1820.000 next year Galehouse believes that net assets (Assets -Liabilities will represent 40 percent of sales. His firm has an 8 percent return on sales and pays 50 percent of profits out as dividends a. What effect will this growth have on funds? The cash balance will decrease by s (7200) b. If the dividend payout is only 25 percent, what effect will this growth have on funds? The cash balance will increase by
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