A company's sales in 2020 were $5.2 million and its total spontaneous assets were $3.2 million. Also in the same year, the firm's spontaneous liabilities consisted of $3.1 million in wages payable, $3.3 million in accounts payable, and $9.5 million in accrued expenses. The firm's profit margin is 6.8% and its dividend payout ratio is 5.5% The balance sheet at year-end is similar in percentage of sales to that of previous years and this will continue in the future. Required: What is the percentage increase in sales that the company must achieve in order to avoid raising funds externally? Note: The term "K'is used to represent thousands (*$1.000). % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)

A company's sales in 2020 were $5.2 million and its total spontaneous assets were $3.2 million. Also in the same year, the firm's spontaneous liabilities consisted of $3.1 million in wages payable, $3.3 million in accounts payable, and $9.5 million in accrued expenses. The firm's profit margin is 6.8% and its dividend payout ratio is 5.5% The balance sheet at year-end is similar in percentage of sales to that of previous years and this will continue in the future. Required: What is the percentage increase in sales that the company must achieve in order to avoid raising funds externally? Note: The term "K'is used to represent thousands (*$1.000). % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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