Bannister Legal Services generate $2,000,000 in sales during 2010, its year-end total assets were $1,500,000. Also, at year-end 2010, current liabilities were %500,000, $2,000,000 note payable, $200,000 of accounts payable, and $100,000 of accurals. Its profit margin will be 5%, and its payout ratio will be 60%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self supporting growth rate?© BrainMass Inc. brainmass.com October 17, 2018, 4:21 am ad1c9bdddf
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Manufacturing Operations for India or Brazil
The purpose of this paper is to provide a detailed report for Levi Strauss & Company so that the firm can make an informed decision regarding expansion of its overseas manufacturing operations into either India or Brazil. Select the optimal financing/investment strategy for your selected scenario
I need assistance with information regarding:
Conduct a sensitivity analysis, based on the following "what if" scenarios:
1) What if funds are blocked? How does this affect the parent company?
2) From the perspective of the subsidiary, what if the subsidiary provided the funds?
3) How does the source of capital affect the subsidiary and the parent company?
4) What source(s) of capital would minimize the cost of capital to the subsidiary?