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.
Correct Answer:
Verified
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