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    Additional financing needed

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    In 2009, Hepler Company's sales were $26 million and its total assets were $10 million. Current liabilities were $4 million and total equity was $2 million. Hepler Company's sales for 2010 are forecast to be $34 million, earnings after taxes are expected to be 5% of sales and dividends of $800,000 are expected to be paid. Assuming that the ratios "assets to sales" and "current liabilities to sales" in 2009 remain the same in 2010, determine the amount of additional financing required.

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    https://brainmass.com/economics/finance/additional-financing-needed-373488

    Solution Preview

    In 2009, Hepler Company's sales were $26 million and its total assets were $10 million. Current liabilities were $4 million and total equity was $2 million. Hepler Company's sales for 2010 are forecast to be $34 million, earnings ...

    Solution Summary

    This posting determines the amount of additional financing required in this case.

    $2.19