What is the self-supporting growth rate

Reference no: EM132077693

Question: Sales Increase

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,200,000. 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, its profit margin will be 4%, and its payout ratio will be 45%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole. Sales can increase by $ , that is by %.

Reference no: EM132077693

Questions Cloud

How much will santiago have to put away : Santiago plans to save for vacation to Brazil in 1.5 years. He will be putting the money into a short-term investment a account earning 4 percent compounded.

Determine the fraction defective in sample : Using samples of 194 credit card statements, an auditor found the following: Use Table-A. Sample 1 2 3 4 Number with errors 4 6 5 8 a.

What quantity the first order should be released : Use the least total cost lot-sizing method to determine when and for what quantity the first order should be released.

Find the total response time : Now suppose a cache is installed in the institutional LAN. And suppose the miss rate is 0.4. Find the total response time. Find the total average response time

What is the self-supporting growth rate : Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,200,000. Also, at year-end 2013, current liabilities.

How many people play exactly two games : 1. How many people play exactly two games? 2. How many people play Chess but not Carrom?

Calculate the project payback period : Calculate the project's payback period by making a single division rather than accumulating cash inflows. Why is this possible in this case?

Explain market failure associated with negative externality : Explain the market failure associated with negative externality - How does the government address the negative externality in your case study

Functional dependencies on the relation schema : Do the following functional dependencies hold on the relation schema Student? Justify your answer for each functional dependency

User Account

All Pages