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Galehouse Gas Stations Inc. expects sales to increase from $1,620,000 to $1,820,000 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 $1,820,000 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?
Cash balance will be ?
b.If the dividend payout is only 25 percent, what effect will this growth have on funds?
cash balance will be
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