What is its self supporting growth rate

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Bryan's muffins, Inc., generated $5,000,000 in sales during 2013, and it's yearend total assets were $2,500,000. Also at year end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 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, the profit margin will be 7%, and its payout ratio well be 80%. How large a sales increase can we have without having to raise funds externally, what is its self supporting growth rate?

Reference no: EM13978780

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