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Jill s Wigs Inc. had the following balance sheet last year: Cash $ 8 0 0 Accounts payable $ 3 5 0 Accounts receivable 4
Jills Wigs Inc. had the following balance sheet last year:
Cash $ Accounts payable $
Accounts receivable Accrued wages
Inventories Notes payable
Net fixed assets Mortgage
Common stock
Retained earnings
Total liabilities
Total assets $ and equity $
Jill has just invented a nonslip wig for men that she expects will cause sales to double from $ to $ increasing net income to $ She feels that she can handle the increase without adding any fixed assets.
Will Jill need any outside capital if she pays no dividends.
If so how much? And how will you finance that?
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