Increase of sales with respect to raise of funds

Assignment Help Accounting Basics

Reference no: EM131518712

Question: Pierce Furnishings generated $2.0 million in sales during 2006, and its yearend total assets were $1.5 million. Also, at year-end 2006, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accruals. Looking ahead to 2007, the company estimates that its assets must increase by 75 cents for every $1 increase in sales. Pierce's profit margin is 5 percent, and its payout ratio is 60 percent. How large a sales increase can the company achieve without having to raise funds externally?

Reference no: EM131518712

Questions Cloud

Discuss how theory works to support your proposed solution : Discuss how the theory works to support your proposed solution. Explain how you will incorporate the theory into your project.

A description of a business situation : A description of a business situation that presents a legal and ethical issue.A description of at least two ethical theories.

Describe a procedure the risk analyst can use to potentially : What are the strengths and weaknesses of cognitive maps and BBNs in this context - Describe a procedure the risk analyst can use to potentially.

Describe how you will address jims recent performance issues : Describe how you will address Jim's recent performance issues. Suggest both constructive and positive feedback designed so that Jim will leave motivated.

Increase of sales with respect to raise of funds : Pierce Furnishings generated $2.0 million in sales during 2006, and its yearend total assets were $1.5 million. Also, at year-end 2006, current liabilities.

Business responsibilities in society : Write a 10 pages paper about Business Responsibilities in Society. Talk about the exploration of ethical issues arising in the context of doing business.

Describe a challenge in a particular industry : 1) Identify and describe a challenge in a particular industry. 2) Describe the knowledge/technology needed and its location for your business strategy.

Why in this era of globalization are necessary for companies : Why in this era of globalization, renewal and reintegration of HR practices are necessary for global companies to remain competitive?

Which of the following is an example of a biomarker : Which of the following is not characteristic of a health impact assessment?Which of the following is an example of a biomarker?

User Account

All Pages