How large a sales increase can the company achieve

Reference no: EM13302452

Pierce furnishings generated $2.0 million in sales during 2004, and its year-end total assets were $1.5 million. Also, at year-end 2004, 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 2005, the company estimates that its assets must increase by 75 cents for every $1 increase in sales. Pierces profit margin is 5 percent, and its payout ratio is 60 percent. How large a sales increase can the company achieve without having to raise funds externally.

Reference no: EM13302452

Questions Cloud

What is the value of its y component : A position vector in the first quadrant has an x component of 8 m and a magnitude of 10 m. What is the value of its y component?

Compute the cars stopping distance and time : at s=0 the driver applies the brakes hard enough to cause the car to skid. Assume that the car keeps sliding until it stops, and assume that throughout this process acceleration is a= -7.4556. compute the car's stopping distance and time.

How have control systems been changed : What are the key internal and external factors that must considered when designing a control system for organizations? How have control systems been changed by Sarbanes-Oxley requirements?

Obtain the gravitational force on the satellite : A satellite with a mass of 330 kg moves in a circular orbit 8.00 multiply.gif 107 m above the Earth's surface. What is the gravitational force on the satellite

How large a sales increase can the company achieve : Looking ahead to 2005, the company estimates that its assets must increase by 75 cents for every $1 increase in sales. Pierces profit margin is 5 percent, and its payout ratio is 60 percent. How large a sales increase can the company achieve witho..

Plaque are dilated to increase blood flow : 4. How much angioplasty is enough??Angioplasty is a technique in which arteries partially blocked with plaque are dilated to increase blood flow. By what factor must the radius of an artery be increased in order to increase blood flow by a fact..

Which of the following is an example of empire building : Which of the following is an example of empire building?

What is the frequency of the unknown fork : An unknown tuning fork produces a beat frequency of 3Hz when played with a 440Hz fork, What is the frequency of the unknown fork

What is the corresponding amplitude of the acceleration : calculate the amplitude F0 of the sinusoidal excitation force that is necessary to produce a steady-state vibration with a velocity amplitude of 10 m/s at resonance. what is the corresponding amplitude of the acceleration

User Account

All Pages