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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 $1,620,000 to $1,820,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 40 percent of sales. His firm has an 8 percent return on sales and pays 50 percent of profits out as dividends. a. What effect will this growth have on funds?

A.the cash balance will be ?

If the dividend payout is only 25 percent, what effect will this growth have on funds?

B. the cash balance will be?

Reference no: EM132621991

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