BHS Inc. determines that sales will rise from $300,000 to $700,000 next year. Spontaneous assets...
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Accounting
BHS Inc. determines that sales will rise from $300,000 to $700,000 next year. Spontaneous assets are 70% of sales and spontaneous liabilities are 30% of sales. BHS has a 10% profit margin and a 40% dividend payout ratio. What is the level of required new funds?
| a | $118,000 |
| b | $40,000 |
| c | BHS is in balance and no new funds are needed |
| d | $70,000 |
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