Please see attached for spreadsheet information.
Owen's Electronics has 9 operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.
If sales grow by 10 percent next year, determine how many dollars of new funds are needed to finance the growth.© BrainMass Inc. brainmass.com June 3, 2020, 10:05 pm ad1c9bdddf
Revenue 100.00 110.00
Net Income 7.00 7.70 (7% of Sales)
Dividends 2.80 3.08 (40% of Dividends)
Retained Earnings 4.20 4.62
This provides the steps to calculate the dollars of new funds in both a Word and Excel format to help understanding of the calculations.