Galehouse Gas Stations Inc

Business Sep 09, 2020

Galehouse Gas Stations Inc. expects sales to increase from $1,620,000 to $1,820,000 next year. Galehouse believes that net assets (Assets − Liabilities) will represent 40 percent of sales. His firm has an 8 percent return on sales and pays 50 percent of profits out as dividends. a. What effect will this growth have on funds?
A.the cash balance will be ?
If the dividend payout is only 25 percent, what effect will this growth have on funds?
B. the cash balance will be ?