The net income is RO 20 million. Last year's sales were RO 180 million. The total...

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The net income is RO 20 million. Last year's sales were RO 180 million. The total assets represent two-thirds of total sales. The accounts payables represent 20% of total assets. The accruals is RO 1 million and the notes payable is RO 2 million. The assets and costs vary directly with sales. The retained earnings is RO 8 million. The firm operates at full capacity. If the sales growth rate is 10%, how much external financing is needed? Interpret. The net income is RO 20 million. Last year's sales were RO 180 million. The total assets represent two-thirds of total sales. The accounts payables represent 20% of total assets. The accruals is RO 1 million and the notes payable is RO 2 million. The assets and costs vary directly with sales. The retained earnings is RO 8 million. The firm operates at full capacity. If the sales growth rate is 10%, how much external financing is needed? Interpret.

Answer rating: 100% (QA)

Given Net income RO 20 million Last years sales RO 180 million Total assets 23 Total sales Accounts ... View the full answer