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Your firm wants to increase sales by 12% in 2020. 2019 sales were $1,800,000. The firm has $4,500,000 in total assets. The firm has $600,000
Your firm wants to increase sales by 12% in 2020. 2019 sales were $1,800,000. The firm has $4,500,000 in total assets. The firm has $600,000 in accounts payable on its balance sheet, along with $250,000 in accruals. The firm has a 6% profit margin, and the firm typically pays out 10% of its net income. How much additional funds, if any, does the firm need to finance the sales expansion?
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