Kindly Answer all the parts please Motocycle Inc. have...
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Kindly Answer all the parts please
Motocycle Inc. have been selling motorcycles for 20 years. Last year they took a risk and started to sell one of Hondas scooters having previously focused on the larger Honda bikes, for the more seasoned biker. After the success of carrying just one scooter they are considering investing $550, 000 to expand the dealership and start selling a full range of scooters. Below are last year's financial figures. Next year the company expects sales to increase by 30% due to the expansion. The return on sales is expected to fall a little due to lower margins on the scooters to 20% Management also expects there to be changes in the working capital accounts on the balance sheet. Due to increased sales with the new dealership, Accounts receivable is expected to increase to $30, 000, a total increase of $5, 000 on last year. Again due to the expansion Lambert and sons expect to take on more inventory next year. They expect it to increase by $20, 000 to $95, 000. What was the company's return on total assets last year? How much cash will internal operations provide (i.e. what is generated by net income, and changes in a/r, inventory etc.) How much will the company have to raise from external sources to continue with an investment of 550, 000 in capital assets
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