west.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do ent: Chapter 17-Fi

Question

west.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do ent: Chapter 17-Financial Planning and Forecasting Assignment Score: 84.00% Save Exit Submit Assignment for Grading Problem 17.09 4Question 9 of 10 Check My Work (2 remaining) eBook Problem 17-9 Sales increase Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.6 milion. Also, at year end 2012, current labilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued sablities. Looking ahead to 2013, the company estimates that its assets must increase by $0.80 for every $1.00 Increase in sales pierce's profit mar n is 7%, and its retention ratio is 60% How large of a sales increase can the compar y achieve without having tora se fund exteman write out your an completely. For example, 25 millon should be entered as 25,000,000. Round your answer to the nearest cent. Check My Work (a remaining) Problem 17.09 Question 9 ot 1os ave Exit Submit Assignment for Grading

Explanation / Answer

Maximum sales increase without additional funds:

= Retained earnings÷Assets required per $ of sales

= $2,000,000×7%×60%÷$0.80

= $105,000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.