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Marshall Manufacturing Is Projecting a Growth of 10% in Sales

question 104

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Marshall Manufacturing is projecting a growth of 10% in sales next year, and a dividend payout of 80%. Based on their growth they are projecting an external financing requirement of $200. They had the following results this year: Sales of $18,000; Current liabilities of $500; Return on Sales of 10%. Calculate what Marshall has projected for assets next year. (Assume that assets, current liabilities, and income grow with the level of sales.)


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