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What effect will this growth have on funds

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Galehouse Gas Stations Inc. expects sales to increase from $1,660,000 to $1,860,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 65 percent of sales. His firm has an 8 percent return on sales and pays 20 percent of profits out as dividends.

a. What effect will this growth have on funds?

Reference no: EM132528088

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