Estimating the external financing


Electric Chair and Table Co. expects sales next year to be $10,000,000. Inventory increase by $300,000. The company has a profit margin of 9 percent and pays out 30 percent of profits in dividends. How much external financing will be necessary? Assume there is no increase in liabilities other than that which will occur with the external financing.

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Finance Basics: Estimating the external financing
Reference No:- TGS053320

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