with sales of 350000 mjm inc is operating at capacity but management anticipates that sales will grow 25 percent during the coming

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadlines.


Order a Similar Paper Order a Different Paper

a. In addition to cash, which assets and liabilities will increase with the increase in sales and by how much if the percent of sales is used to forecast the increases?
b. How much external finance will the firm need?
c. If cash did not increase but could be maintained at $7,500, what impact would the lower cash have on the firm need for external finance?
d. If the firm distributed 25 percent instead of 50 percent of its earnings, would it need external finance?
e. Construct a new balance sheet assuming that cash increases with the increase in sales and the firm distributes 50 percent of its earnings to stockholders. If the firm needs external finance, acquire the funds by issuing a short-term note to a commercial bank. Compare this financing strategy to the strategies implied by the answers to parts c and d.

"Is this question part of your assignment? We can help"

ORDER NOW

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and PhD writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper