Blue Co., a firm that is operating at full capacity, has a balance sheet as of December 31, 2021, that shows that it has a total of P2,300,000 in assets on which two-thirds is fixed asset while current liabilities amounts to P950,000. In 2021, the net income is 190,000, payout ratio is 40%, and profit margin is 15% and no changes in these ratios are projected for the coming years. Sales are projected to increase by 10% next year. How much is the additional financing needed?
Blue Co., a firm that is operating at full capacity, has a balance sheet as of December 31, 2021, that shows that it has a total of P2,300,000 in assets on which two-thirds is fixed asset while current liabilities amounts to P950,000. In 2021, the net income is 190,000, payout ratio is 40%, and profit margin is 15% and no changes in these ratios are projected for the coming years. Sales are projected to increase by 10% next year. How much is the additional financing needed?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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