How large of a sales increase can the company achieve

Assignment Help Finance Basics

Reference no: EM132027304

Qusetion: Paladin Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.5 million. Also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.75 for every $1.00 increase in sales. Paladin's profit margin is 4%, and its retention ratio is 50%.

How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132027304

Questions Cloud

Describe the different phases of group development : Describe the different phases of group development. Provide an example of a situation for each phase.

Roles and needs affect the process of teamwork : What are some examples of different roles and needs within a team? How can these roles and needs affect the process of teamwork?

To loan or not to loan : Harry Edwards is the loan officer at High Plains Bank, a small bank located in a town of 3,000 people in rural Oklahoma.

Identify the internal and external processes : Identify the internal and external processes used by auditors for your chosen organization from your Week One assignment.

How large of a sales increase can the company achieve : Paladin Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.5 million.

Identification of the eighteen candidate security control : Security Assessment for an enterprise must be incorporated into the Software Development Life Cycle (SDLC) in order to be a secure, integrated process.

What are some factors in selecting a strong team : Why is the management team so important to a new business and what are some factors in selecting a strong team?

Desired treatment or perspectives might you encounter : As a manger of a business, what differences in desired treatment or perspectives might you encounter?

Describe evolution of health care information technology : Describe the evolution of health care information technology by identifying key technological advancements in each decade, beginning with the 1960s.

User Account

All Pages