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Galehouse Gas Stations Incorporated expects sales to increase from $1,580,000 to $1,780,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 65
Galehouse Gas Stations Incorporated expects sales to increase from $1,580,000 to $1,780,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 65 percent of sales. Her firm has an 8 percent return on sales and pays 30 percent of profits out as dividends. a. What effect will this growth have on funds? b. If the dividend payout is only 5 percent, what effect will this growth have on funds
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