2) The net income is RO 25,000. Last year's sales were RO 180,000. The total assets represent half (50%) of total sales. The accounts payables represent 10% of total assets. The accruals is RO 2,000 and the notes payables is RO 3,000. The assets and costs vary directly with sales. The firm distributes RO 15,000 dividends. The firm operates at full capacity. If the sales growth rate is 15%, how much external financing is needed? Interpret.
2) The net income is RO 25,000. Last year's sales were RO 180,000. The total assets represent half (50%) of total sales. The accounts payables represent 10% of total assets. The accruals is RO 2,000 and the notes payables is RO 3,000. The assets and costs vary directly with sales. The firm distributes RO 15,000 dividends. The firm operates at full capacity. If the sales growth rate is 15%, how much external financing is needed? Interpret.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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