Use the following information and the percentage-of-sales method to answer the following question(s) .
Below is the 2017 year-end balance sheet for Richmond Enterprises.Sales for 2017 were $1 600,000 and are expected to be $2 000,000 during 2018.In addition, we know that Banner plans to pay $90,000 in 2018 dividends and expects projected net income of 4% of sales.(For consistency with the answer selections provided, round your forecast percentages to two decimals.)
Richmond Enterprises Balance Sheet
December 31, 2017
-Richmond's projected discretionary financing needed for 2018 is
Definitions:
Convex
A shape where a line drawn between any two points on the structure will lie outside it, often used in economics to describe preference curves.
Marginal Rates
Rates of tax or charges that apply to the next unit of income or consumption, often increasing with the amount subject to the rate.
MU/P
Marginal utility per unit of price; a calculation used to determine the additional satisfaction gained per unit of currency spent on different goods and services.
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