Determining self-supporting growth rate


1) Maggie's Muffins, Inc., produced= $2,000,000 in sales during 2013, and its year-end total assets were= $1,100,000. At year-end 2013, present liabilities were= $1,000,000, consisting of= $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking forward to 2014, company evaluates that its assets should increase at same rate as sales, its impulsive liabilities will increase at same rate as sales, its profit margin will be= 7%, and its payout ratio will be= 40%. How large the sales increase can company attain without having to raise funds externally; i.e., what is its self-supporting growth rate?

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Finance Basics: Determining self-supporting growth rate
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