which one is correct please suggest? QUESTION 39 Getrag expects its sales to increase 20% next year from its current level of $4.7 million. Getrag has current assets of $660,000, net fixed assets of...


which one is correct please suggest?


QUESTION 39







  1. Getrag expects its sales to increase 20% next year from its current level of $4.7 million. Getrag has current assets of $660,000, net fixed assets of $1.5 million, and current liabilities of $462,000. All assets are expected to grow proportionately with sales. If Getrag has a net profit margin of 10%, what additional financing will be needed to support the increase in sales? Getrag does not pay dividends.

























    a.
    $339,600

    b.
    No financing needed, surplus of $224,400

    c.
    No financing needed, surplus of $524,400

    d.
    $283,200







Jun 01, 2022
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