Galehouse Gas Stations Inc. expects sales to increase from $1,720,000 to $1,920,000 next year. Galehouse believes that net assets (Assets Liabilities) will represent 55 percent of sales. His firm has an 9 percent return on sales and pays 25 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 20 percent, what effect will this growth have on funds?

The cash balance will increase by ____?____