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Galehouse Gas Stations Inc. expects sales to Increase from $1,690,000 to $1,890,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent
Galehouse Gas Stations Inc. expects sales to Increase from $1,690,000 to $1,890,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 65 percent of sales. His firm has an 11 percent return on sales and pays 35 percent of profits out as dividends. a. What effect will this growth have on funds? The cash balance will Increase by b. if the dividend payout is only 15 percent, what effect will this growth have on funds? The cash balance wil increase by 46.715
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