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Sales can increase by $ that is by

Sales can increase by $ that is by

FINANCIAL ACCOUNTING
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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2 Homework O eBook Self-Supporting Growth Rate Maggie's Muffins Bakery generated $4 million in sales during 2019, and its year-end total assets were $2.4 million. Also, at year-end 2019, current liabilities were $1 million, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2020, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 3%, and its payout ratio will be 45%. How large a sales increase can the company achieve without having to raise funds externally-that is, what is its self-supporting growth rate? Do not round intermediate calculations. Enter your answer for sales increase in dollars. For example, an answer of $2 million should be entered as 2,000,000.Round the monetary value to the nearest dollar and percentage value to one decimal place. Sales can increase by $ that is by 11 Ofe Fo Broblem 11.1 alferes cognitions and pdf a company cen a company and sha pdf PO-2022-Financial.co Check My Work O X A-Z 1Me
Transcribed Image Text:2 Homework O eBook Self-Supporting Growth Rate Maggie's Muffins Bakery generated $4 million in sales during 2019, and its year-end total assets were $2.4 million. Also, at year-end 2019, current liabilities were $1 million, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2020, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 3%, and its payout ratio will be 45%. How large a sales increase can the company achieve without having to raise funds externally-that is, what is its self-supporting growth rate? Do not round intermediate calculations. Enter your answer for sales increase in dollars. For example, an answer of $2 million should be entered as 2,000,000.Round the monetary value to the nearest dollar and percentage value to one decimal place. Sales can increase by $ that is by 11 Ofe Fo Broblem 11.1 alferes cognitions and pdf a company cen a company and sha pdf PO-2022-Financial.co Check My Work O X A-Z 1Me
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