Assets must grow in proportion to sales


Acme Motors' assets were P650, 000 at the end of 2005, and its sales were P500, 000 for the year. For 2006, sales are expected to grow by 30%, and since Acme is operating at full capacity, its assets must grow in proportion to sales.

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Accounting Basics: Assets must grow in proportion to sales
Reference No:- TGS041034

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