Additional funds needed

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A Company has $1,000,000 of assets, $100,000 of accounts payable, $300,000 of long-term debt and $600,000 of equity. They earned $50,000 on sales of $500,000 and have a dividend payout ratio of 60%. If sales increase by 10%, according to the percentage of sales model they will have Additional Funds Needed of

  • $132,000.
  • $68,000.
  • $57,000.
  • $24,000.

Reference no: EM131728429

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