The following two problems count for a total of 20 points. To get credit, please

Question

The following two problems count for a total of 20 points. To get credit, please show all your work step-by-step and underline your answer for each step. The following is the balance sheet for 2013 for Joy Corporation Sales for 2014 have been projected to increase by 10% Joy has a 8% return on sales and 80% is paid out as dividends. Assuming that Joy Corp. is operating below capacity, calculate the amount of new funds required to finance this growth Calculate the percentage o. sales growth it the company does not repose any new funds.

Explanation / Answer

a)SALES FOR 2014=$4,50,000+10%=4,95,000

RETURN ON SALES=$4,95,000*8%=$39,600

AMOUNT TO BE PAID OUT AS DIVIDEND=$39,600*80%=$31,680

FUNDS TO BE RETAINED FOR GROWTH=$39,600-$31,680=$7,920

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