q.16.1

QUESTION 1 Thibodaux's Wonderful World of Boudin generated $10 million in sales during 2021. Total operating assets of the firm for 2021 were recorded at $9,000,000. At the end of 2021, current liabilities were $4 million. This consisted of $2,500,000 of notes payable, $1 million of accounts payable, and $500,000 of accruals. Current assets included $1,000,000 in cash, $2,000,000 in accounts receiable, and $3,000,000 in inventory. (Hint: we care about spontaneous liabilities versus non-spontaneous. We do NOT make a similar distinction with assets.) Looking ahead to 2022, the company estimates that its assets must increase at the same rate as sales, its spontaneous Habilities will increase at the same rate as sales, its profit margin will be 12%, and its payout ratio will be 30%. How large a sales increase can the company achieve without having to raise funds externally-that is. what is its self-supporting growth rate? WARNING: MAKE SURE TO ENTER YOUR ANSWER IN AS A PERCENTAGE....aka your answer for the self-supporting growth rate will come out to a number like 0.0578. IF you put this number into BB, even if it is the "right" answer....it is NOT formatted correctly. Blackboard in this case will expect you to type in 5.78 for 0.0578...it will also not like it if you type in 5.78%.....please don't make BB unhappy 4 points