What effect will this growth have on funds

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Question - Davis expects sales to increase from $1,500,000 to $2,000,000 next year. Net assets (Assets minus liabilities) will continue at 20% of sales. Net income will be 10% of sales. 30% of profits will be paid out as dividends. What effect will this growth have on funds?

a. Increase of $240,000

b. Increase of $40,000

c. Decrease of $40,000

d. Increase of $100,000

Reference no: EM133049682

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