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Galehouse Gas Stations Incorporated expects sales to increase from $1,610,000 to $1,810,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 40
Galehouse Gas Stations Incorporated expects sales to increase from $1,610,000 to $1,810,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 40 percent of sales. Her firm has an 7 percent return on sales and pays 60 percent of profits out as dividends. a. What effect will this growth have on funds? b. If the dividend payout is only 35 percent, what effect will this growth have on funds
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