Galehouse Gas Stations Inc. expects sales to increase from $1,630,000 to $1,830,000 next year. Galehouse believes...

Transcribed Image Text:

Galehouse Gas Stations Inc. expects sales to increase from $1,630,000 to $1,830,000 next year. Galehouse believes that net assets (Assets - Liabilites) will represent 35 percent of sales His firm has an 8 percent return on sales and pays 30 percent of profits out as dividends a. What effect will this growth have on funds? The cash balance will rork 2 i Saved b. If the dividend payout is only 10 percent, what effect will this growth have on funds? pok The cash balance will wint rint < Prev 2 of 19 Next > e here to search O BI pfm-lt-4akh 章+ F1 F2 F3 F4 F5 F6 F8 F9 F10 23 % & 2 3 4 7- 8 W. R ( CO A LO Galehouse Gas Stations Inc. expects sales to increase from $1,630,000 to $1,830,000 next year. Galehouse believes that net assets (Assets - Liabilites) will represent 35 percent of sales His firm has an 8 percent return on sales and pays 30 percent of profits out as dividends a. What effect will this growth have on funds? The cash balance will rork 2 i Saved b. If the dividend payout is only 10 percent, what effect will this growth have on funds? pok The cash balance will wint rint < Prev 2 of 19 Next > e here to search O BI pfm-lt-4akh 章+ F1 F2 F3 F4 F5 F6 F8 F9 F10 23 % & 2 3 4 7- 8 W. R ( CO A LO

Answer rating: 100% (QA)

Sale increased amount expected sale current sale sales increase amou... View the full answer