How large a sales increase can the company achieve

Assignment Help Finance Basics

Reference no: EM13291182

Bannister Legal Services generated $4,000,000 in sales during 2010, and its year-end total assets were $2,800,000. Also, at year-end 2010, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accruals. Looking ahead to 2011, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 5%, and its payout ratio will be 40%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate.

Reference no: EM13291182

Questions Cloud

Explain the percentage of cl in the impure sample : When dissolved in water and reacted with excess silver nitrate, AgNO3 , 0.9855 g of AgCl precipitated. What is the percentage of Cl in the impure sample

What were bertin total long-term debt in 2010 : How much new long-term debt financing will be needed in 2011? (Hint: AFN - New stock = New long-term debt.) Round your answer to the nearest dollar.

Which species is your favorite on land and in the water : Select a favorite biome and do some Internet research on what species are specific to the area. Which species is your favorite on land and in the water?

How much energy must be supplied to the refrigerator : An ideal refrigerator utilizes a Carnot cycle operating between 0 degree C and 26 degree C. How much energy must be supplied to the refrigerator

How large a sales increase can the company achieve : How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate.

Explain the magnesium is not allowed sufficient oxygen : When the magnesium is not allowed sufficient oxygen, some magnesium nitride, Mg3N2, forms. How does one decompose any magnesium nitride

Explain the salt that is present in unknown : You are given an unknown, colorless, solution that may contain only one salt from the following set: NaA, NaB, NaC. In solution each salt dissociates completely into the Na+ ion and the anion A-, B-, or C-. The Na+ ion is a spectator ion. Given th..

Obtain the dielectric constant of the material : A parallel-plate capacitor is made of two flat metal plates pressed against a thin slab of dielectric material. What is the dielectric constant of the material that was initially used to fill the gap between the plates

Explain why difficult to isolate neutral p-aminobenzoic acid : Why would be difficult to isolate neutral p-aminobenzoic acid. What effect will pH have on the structure of your product

User Account

All Pages