What is the level of required new funds

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Reference no: EM13972588

BHS Inc. determines that sales will rise from $300,000 to $500,000 next year. Spontaneous assets are 70% of sales and spontaneous liabilities are 30% of sales. BHS has a 10% profit margin and a 40% dividend payout ratio. What is the level of required new funds?

A. $50,000

B. $20,000

C. $100,000

D. BHS is in balance and no new funds are needed.

Reference no: EM13972588

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