Solution-Will the company need any outside capital

Will the company need any outside capital

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Reference no: EM132881202

Question - AmeriHealth had the following balance sheet last year:

Cash $800 Accounts Payable $350 Accounts Receivable $450 Accrued Wages $150

Inventory $950 Notes Payable $2,000

Net Fixed Assets $34,000 Mortgage $26,500

Common Stock $3,200

Retained Earnings $4,000

Total Assets: $36,200 Total Liabilities & Equity $36,200

The owner of AmeriHealth has just invented a nonslip wig for cancer patients which she expects will cause sales to double from $10,000 to $20,000, increasing net income to $1,000. She feels that she can handle the increase without adding any fixed assets. Will the company need any outside capital if they pay no dividends and, if yes, how much?

Reference no: EM132881202

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Will the company need any outside capital

Reference no: EM132881202

Reference no: EM132881202

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