Galehouse gas stations inc expects sales to increase from

Reference no: EM13484542

Galehouse Gas Stations Inc. expects sales to increase from $1,550,000 to $1,750,000 next year. Mr. Galehouse believes that net assets
(Assets 2 Liabilities) will represent 50 percent of sales. His firm has an 8 percent return on sales and pays 45 percent of profits out as dividends.
a. What effect will this growth have on funds?
b. If the dividend payout is only 25 percent, what effect will this growth have on funds?

Reference no: EM13484542

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