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PARI 1 - INTERNAL SOURCES OF FUNDING The management of Yates Motors is considering investing $950,000 to purchase i Hyundar dealership and expand operations in Barrie: Last year's financial figures are as follows: Prior Year-Financials Next year the company expects saies to increase by 80% due to the expansion. The return on sales is expected to fall to 11.5% due to the initial set up costs. Managencnt also expects there to be changes in the working capital accounts on the balance sheet. - Due to increased sales with the new dealership, average accounts receivable is expected to increase to $160,000-a total increase of $70,000 on last year. - Again due to the expansion, Yates' expects to take on more irventory next year. They expect it to increase by $125,000 to $25,000. PARI 1 - INTERNAL SOURCES OF FUNDING The management of Yates Motors is considering investing $950,000 to purchase i Hyundar dealership and expand operations in Barrie: Last year's financial figures are as follows: Prior Year-Financials Next year the company expects saies to increase by 80% due to the expansion. The return on sales is expected to fall to 11.5% due to the initial set up costs. Managencnt also expects there to be changes in the working capital accounts on the balance sheet. - Due to increased sales with the new dealership, average accounts receivable is expected to increase to $160,000-a total increase of $70,000 on last year. - Again due to the expansion, Yates' expects to take on more irventory next year. They expect it to increase by $125,000 to $25,000

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