Consider the following information for the percentage of sales approach: Sales = $3M, NI = $0.4M, Retention...
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Accounting
- Consider the following information for the percentage of sales approach:
- Sales = $3M,
- NI = $0.4M,
- Retention ratio = 0.75
- Total Asset = $4M
- Current Liability $0.2M
- Long-term debt = $1M
- Equity = $2.8M
- If sales increase by 40% (and NI, assets, and CL increase at the same rate), calculate the external financing needed.
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