JHOPE "I am your hope" Compary has 10% net profit margin on sales in previous years and expects to maintain the same next year. The Business is expected to increase its sales level from P500,000 to P800,000. The percentages of current sales and current liabilities that have direct relationship with sales are 80% and 25% respectively. Out of the total earnings at are expected to be realized next year, 40% will be returned to the shareholders in the form of dividends. Compute the following: 1. Projected increase in current assets 2. Spontaneous increase in current liabilities 3. Increase in retained earnings 4. Additional fund needed.
JHOPE "I am your hope" Compary has 10% net profit margin on sales in previous years and expects to maintain the same next year. The Business is expected to increase its sales level from P500,000 to P800,000. The percentages of current sales and current liabilities that have direct relationship with sales are 80% and 25% respectively. Out of the total earnings at are expected to be realized next year, 40% will be returned to the shareholders in the form of dividends. Compute the following: 1. Projected increase in current assets 2. Spontaneous increase in current liabilities 3. Increase in retained earnings 4. Additional fund 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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1. Projected increase in current assets
2. Spontaneous increase in current liabilities
3. Increase in retained earnings
4. Additional fund needed
Transcribed Image Text:B. Compute the additional funds needed.
JHOPE "I am your hope" Compary has 10% net profit margin on sales in previous years and expects to maintain
the same next year. The Business is expected to increase its sales level from P500,000 to P800,000.
The percentages of current sales and current liabilities that have direct relationship with sales are 80% and 25%,
respectively. Out of the total earnings at are expected to be realized next year, 40% will be returned to the
shareholders in the form of dividends.
Compute the following.
1. Projected increase in current assets
2. Spontaneous increase in current liabilities
3 Increase in retained earnings
4. Additional fund needed.
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