What is its self- supporting growth rate

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Reference no: EM131065638

Maggie’s Muffins, Inc., generated $490,000.00 in sales during 2013, and its year-end total assets were $310,513.00. Also, at year-end 2013, current liabilities were $90,700.00, consisting of $33,000.00 of notes payable, $40,500.00 of accounts payable, and $17,200.00 of accruals. Looking ahead to 2014, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 6.25%, and its payout ratio will be 73.50%. How large a sales increase can the company achieve without having to raise funds externally—that is, what is its self- supporting growth rate? include dollar amount and percentage.

Reference no: EM131065638

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What is its self- supporting growth rate : Maggie’s Muffins, Inc., generated $490,000.00 in sales during 2013, and its year-end total assets were $310,513.00. Also, at year-end 2013, current liabilities were $90,700.00, consisting of $33,000.00 of notes payable, $40,500.00 of accounts payable..

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