Problem:
Philip Morris expects the sales for his clothing company to be $740,000 next year. Philip notes that net assets (Assets - Liabilities) will remain at 40 percent of Sales. His clothing firm will enjoy a 11 percent return on total sales. He will start the year with $340,000 in the bank.
Requirement:
Question: What would Philip's ending cash balance be?
Note: Please answer in proper manner and show all computations