External (Additional) Funds Needed
Not what you're looking for?
The most recent financial statements for REM Co. are shown below:
Income Statement
Sales 400
Costs 200
Taxes 50
Net Income 150
Balance sheet
Assets 1200
Total 1200
Debt 600
Equity 600
Total 1200
Assets and costs are proportional to sales. Debt is not. A dividend of $90 was paid, and REM wishes to maintain a constant payout to net income. Next year's sales are projected to be $480. What is external funds need (EFN)?
Purchase this Solution
Solution Summary
This solution illustrates how to compute the external (additional) funds needed to fuel sales growth.
Solution Preview
The basis formula for external funds needed (also called "additional funds needed") is:
EFN = ((Assets which rise ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking