The Country Faire Company wants achieve $5 million in additional sales. They believe that they can raise $300,000 in additional funding from investors and that vendors will extend an additional $200,000 in credit. If the firm pays out 40% of earnings as dividends and profit margin is 10% on the additional sales, then how much can they afford to spend on assets to make this plan work?

$375,000

$500,000

$600,000

$675,000

$800,000

Answer rating: 100% (QA)

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