Question
Galehouse Gas Stations Inc. expects sales to increase from $1,660,000 to $1,860,000 next year. Galehouse believes that net assets (Assets Liabilities) will represent 65 percent
Galehouse Gas Stations Inc. expects sales to increase from $1,660,000 to $1,860,000 next year. Galehouse believes that net assets (Assets Liabilities) will represent 65 percent of sales. His firm has an 8 percent return on sales and pays 20 percent of profits out as dividends.
a.What effect will this growth have on funds?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
