The following is the balance sheet for 2005 for Marbell Inc. Sales for 2005 were $300,000. Sales for 2006 have been projected to increase by 20%. Assuming that Marbell Inc. is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

Question

The following is the balance sheet for 2005 for Marbell Inc.  Sales for 2005 were $300,000. Sales for 2006 have been projected to increase by 20%. Assuming that Marbell Inc. is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

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The Answer of The following is the balance sheet for 2005 for Marbell Inc.  Sales for 2005 were $300,000. Sales for 2006 have been projected to increase by 20%. Assuming that Marbell Inc. is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8% return on sales and 70% is paid out as dividends.

The Following Is the Balance Sheet for 2005 for Marbell