Question

SLM, Inc., with sales of $1,000, has the following balance sheet:
It earns 10 percent on sales (after taxes) and pays no dividends.
a. Determine the balance sheet entries for sales of $1,500 using the percent of sales method of forecasting.
b. Will the firm need external financing to grow to sales of $1,500?
c. Construct the new balance sheet and use newly issued long-term debt to cover any financial deficiency.


$1.99
Sales2
Views136
Comments0
  • CreatedMarch 19, 2015
  • Files Included
Post your question
5000