Consider the following information for Smart Products: totalassets P1000; sales-P1540; net profit margin-12%; dividendpayout ratio=40%; accounts payable=P308. If sales are forecast toincrease 30%, the "short cut" estimate of external funds required(EFR) would be P________?

Calculation of external funds required- ERF = (A/S - L/S) ∆S- MS1(1-D) A/S = Total assets/Sales L/S…

Answered: estimate of external funds require

Business

Accounting

estimate of external funds require

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Consider the following information for Smart Products: total
assets P1000; sales-P1540; net profit margin-12%; dividend
payout ratio=40%; accounts payable=P308. If sales are forecast to
increase 30%, the "short cut" estimate of external funds required
(EFR) would be P________?

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