PRINCESS Trading Company presents the following data as of December 31, 2018. Percent to sales Amount 10% 25% 200,000 500,000 700,000 200,000 300,000 Cash Accounts Receivable 35% Inventory Accounts Payable Notes Payable 10% 15% The business is expected to increase its sales by 40% next year. It has maintained a net profit margin to sales of 10% with a dividend payout ratio of 40%. Compute the following: 5. Projected increase in current assets 6. Spontaneous increase in current liabilities 7. Increase in retained earnings 8. Additional fund needed.

PRINCESS Trading Company presents the following data as of December 31, 2018. Percent to sales Amount 10% 25% 200,000 500,000 700,000 200,000 300,000 Cash Accounts Receivable 35% Inventory Accounts Payable Notes Payable 10% 15% The business is expected to increase its sales by 40% next year. It has maintained a net profit margin to sales of 10% with a dividend payout ratio of 40%. Compute the following: 5. Projected increase in current assets 6. Spontaneous increase in current liabilities 7. Increase in retained earnings 8. Additional fund needed.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 6E

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