What effect will this growth have on funds

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Question - Galehouse Gas Stations Inc. expects sales to increase from $1,560,000 to $1,760,000 next year. Galehouse believes that net assets (Assets - Liabilities) will represent 55 percent of sales. His firm has an 7 percent return on sales and pays 35 percent of profits out as dividends.

a. The cash balance will be?

b. If the dividend payout is only 10 %, what effect will this growth have on funds?

Reference no: EM132832397

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What effect will this growth have on funds : Galehouse Gas Stations Inc. expects sales to increase from $1,560,000 to $1,760,000 next year. What effect will this growth have on funds
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