Question: please can anyone help quick Problem 4-27 Percent-of-sales method [LO4-3) Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were
Problem 4-27 Percent-of-sales method [LO4-3) Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current labilities will vary directly with sales. The firm is working at full capacity. Balance Sheet im lions) Assets Liabilities and Stockholders' Equity Cash $6 Accounts payable $19 Accounts receivable 24 Accrued wages 6 Inventory 27 Accrued taxes 12 Current Assets Current liabilities $ 37 Fixed asset 44 Notes payable 14 Common stock 19 Retained earning 31 Total assets $ 101 Total liabilities and stockholders' equity $ 101 Owen's Electronics has an aftertax profit margin of 9 percent and a dividend payout ratio of 40 percent If sales grow by 15 percent next year determine how many dollars of new funds are needed to finance the growth (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g. $1,234,567).) New funds
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