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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 10P

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hope you can answer or provide a picture. 1. Projected increase in current assets 2. Spontaneous increase in current liabilities 3. Increase in retained earnings 4. Additional fund needed

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.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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