Additional External Financing

Sep 9th, 2013
Business & Finance
Price: $10 USD

Question description

You  have been running your small business, Craft’s Boat Shop, for several years now  and have been very successful.  You have  come to the point where you expect sales to increase next year and want to be  sure that you have enough assets available to support your sales. You also need  to have the financing available to acquire those assets, if needed.

Accordingly,  you have gathered the following data:

Craft’s Boat Shop                        

Sales Last Year


Assets at the End of Last Year


Accounts Payable


Notes Payable




Profit Margin on Sales


Dividend Payout


Note: All figures are as of the end of last year


  • If you need $0.80 in assets  for every $1.00 in sales, by how much can sales increase without obtaining  additional outside financing?  HINT: Use  the AFN formula.

Tutor Answer

(Top Tutor) Daniel C.
School: Boston College

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Review from our student for this Answer

Sep 9th, 2013
"Excellent work as usual"
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