Blue Co., a firm that is operating at full capacity, has a balance sheet as of December 31, 2021, that shows that it has a total of P2,300,000 in assets on which two-thirds is fixed asset while current liabilities amounts to P950,000. In 2021, the net income is 190,000, payout ratio is 40%, and profit margin is 15% and no changes in these ratios are projected for the coming years. Sales are projected to increase by 10% next year. How much is the additional financing needed?

Blue Co., a firm that is operating at full capacity, has a balance sheet as of December 31, 2021, that shows that it has a total of P2,300,000 in assets on which two-thirds is fixed asset while current liabilities amounts to P950,000. In 2021, the net income is 190,000, payout ratio is 40%, and profit margin is 15% and no changes in these ratios are projected for the coming years. Sales are projected to increase by 10% next year. How much is the additional financing needed?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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