Galehouse Gas Stations Incorporated expects sales to increase from $1,750,000 to $1,950,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 80 percent of sales. Her firm has an 12 percent return on sales and pays 40 percent of profits out as dividends. a. What effect will this growth have on funds? The cash balance will decrease by The cash balance will b. If the dividend payout is only 20 percent, what effect will this growth have on funds?

Galehouse Gas Stations incorporated expects sales to increase from $1,750,000 to $1,950,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 80 percent of sales. Her firm has an 12 percent return on sales and pays 40 percent of profits out as dividends: a. What effect will this growth have on funds? b. If the dividend poyout is only 20 percent, what effect will this growth have on funds