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Approximate Precision Tools generated $500,000 in sales during 2017, and its year-end total assets were $350,000...
Approximate Precision Tools generated $500,000 in sales during 2017, and its year-end total assets were $350,000 . Also, at year-end 2017, current liabilities were $50,000 , consisting of $10,000 of notes payable, $25,000 of accounts payable and $15,000 of accruals. Looking ahead to 2018, the company estimates that its assets and spontaneous liabilities must increase at the same rate as sales. Its profit margin will be 3%, and its payout ratio will be 20%. What is the company’s self-supporting growth rate and how large a sales increase (in dollars) can the company achieve without having to raise funds externally?
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jeff jeffy answered 1 year agoRelated Solutions
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