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Wurst Company is planning on a 30% increase in sales volume next year. This year's sales revenue is $2,200,000 and its year-end balance sheet shows
Wurst Company is planning on a 30% increase in sales volume next year. This year's sales revenue is $2,200,000 and its year-end balance sheet shows total current assets of $450,000, total plant assets of $2,100,000, and total current liabilities of $110,000. The company's dividend payout ratio is 65% and its profit margin is expected to remain steady at 11%. The company is presently operating at full capacity so it estimates that it will need to purchase $100,000 of additional plant assets to accommodate the increased sales volume. Estimate the new funding that will be required using the percentage of sales method. 1 Ff TA B I iii III E Italic [Cmd + i]
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