Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. maggie's muffins bakery generated $2 million in sa

Maggie's Muffins Bakery generated $2 million in sales during 2018, and its year-end total assets...

70.2K

Verified Solution

Question

Finance

Maggie's Muffins Bakery generated $2 million in sales during 2018, and its year-end total assets were $1.2 million. Also, at year-end 2018, current liabilities were $1 million, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2019, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 5%, and its payout ratio will be 55%. How large a sales increase can the company achieve without having to raise funds externallythat is, what is its self-supporting growth rate? Do not round intermediate calculations. Round the monetary value to the nearest dollar and percentage value to the nearest whole number.

Sales can increase by $ , that is by %.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Question 3: Variance Analysis (20 marks in total) The followingstandard cost data relate to...

Accounting
Q

Explain how you can use QR factorization to solve the following problem Find x1 and x2 that...

Advance Math
Q

You take random sample of 200 people from Salinas and find that their average income...

Basic Math
Q

Solve 5 3 2x 3

Statistics
Q

Simplify the exponential expression 50x 10x 5 50x Simplify your answer Type exponential notation with...

Calculus
Q

Consider the following function f t 1 1 3 6 t Use Definition 7 1...

Calculus
Q

The company gave its $20,000 note receivable to a bank for collection. The note is...

Accounting
Q

Question 3: (C1&C2)(8 Marks) Indicate the category and the standard for each statement below: 1-...

Accounting
Q

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining...

Accounting
Q

Brothers Herry and Hermen Housyerdsy began operstions of their mschine shop (H & H Tool,...

Accounting
Q

The IRS may assess penalties on taxpayers for which of the following

Accounting
Q

True or False: 1. A point beyond the breakeven point will show operating income and...

Accounting