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Petal Providers Corp is interested in estimating its additional

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Petal Providers Corp is interested in estimating its additional financing needed to support a rapid increase in sales next year. Last year, revenues were $1 million, net profit was $50,000, investment in assets was $750,000, payables and acccruals were $100,000, and stockholders' equity at the end of the year was $450,000. The venture did not pay out any dividends and does not expect to pay dividends for the foreseeable future.;A. What would be your estimate of the additional funds needed next year to support a 30 percent increase in sales?;B. How would your answer to Part A change if the expected sales growth were only 15 percent?

 

Paper#27830 | Written in 18-Jul-2015

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