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Additional funds needed with excess capacity

Additional Funds Needed with Excess Capacity:

A firm has the following balance sheet

917_Additional funds needed.jpg

Sales for the year just ended were $400, and fixed assets were used at 80 percent of capacity, but its current assets were at optimal levels. Sales are expected to grow by 5 percent next year, and the dividend payout ratio is 60 percent. How much additional funds (APN) will be needed?

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Finance Basics: Additional funds needed with excess capacity

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Additional funds needed with excess capacity

Reference No:- TGS01451698

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Balance-sheet and income statements

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Additional funds needed with excess capacity

Reference No:- TGS01451698

Recent Questions Asked Finance Basics

Q : Balance-sheet and income statements

Q : Fixed cost-variable cost-demand problem

Q : High inventories and dramatic shifts in capacity

Q : What will the company net income

Q : Additional funds needed with excess capacity

Q : Sales taxes in governmental fund statements

Q : Grant revenue in governmental fund statements

Q : What is the standard deviation of the return

Q : Develop a master budget for the next calendar year

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