Company cash balance at the end of the second year


Question: An entrepreneur starts a company by investing $300,000 of equity to fund working capital. The entrepreneur makes the following forecast assumptions: First-year sales $500,000 Annual sales growth 8% Net profit margin 30% Working capital / Sales 80% Based only on this information, the company's cash balance at the end of the second year is closest to: A $32,000 B $50,000 C $180,000

 

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Accounting Basics: Company cash balance at the end of the second year
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