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Pinnacle Mfghas current sales of $1,000,000. Sales are expected to grow at 20% next year, and the investment investment in additional assets needed to finance
Pinnacle Mfghas current sales of $1,000,000. Sales are expected to grow at 20% next year, and the investment investment in additional assets needed to finance the growth is expected to be 150% of the sales increase. Short-term liabilities, namely accounts payable and other accruals, are expected to provide financing equivalent to 15% of the sales increase. The firm's net profit margin should be 20%, and the firm plans to pay a cash dividend of one-third of its expected net income. How much additional financing is needed to finance the Pinnacle's growth? Please click on the following link to access a blank Excel-type worksheet Blank XLS Worksheet.xls Click to open O $$85,000 $90,000 0 $100,000 $110,000
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