Mars Corporation is interested in estimating the expected rate of sales growthsustainability and additional financing needed to support improvementsfast sales next year. Last year, revenue was $5.5...

Mars Corporation is interested in estimating the expected rate of sales growth sustainability and additional financing needed to support improvements fast sales next year. Last year, revenue was $5.5 million; net profit is $500,000; investment in assets is $2,500,000; payables and accruals are $1,000,000; and shareholder equity at the end of the year is $1,500,000 (that is, the equity at the beginning of the year of $1,000,000 plus retained earnings of $500,000). The business does not pay dividends and does not expect to pay dividends in the future. c. Compute forecasted sales and changes in sales first. What is your estimate of the funds additions needed next year to support the upgrade sales by 20 percent? Also include the interpretation of the results of the calculations you at this point C. d. Compute forecasted sales if sales growth which is expected to be around 45 percent. What is your estimate of the extra funds needed if the expected sales growth is about 45 percent? Give your opinion

Jun 10, 2022
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