(TCO 3) BHS Inc. determines that sales will rise from $300,000 to $500,000 next year. Spontaneous assets

(TCO 3) 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? (Points: 5)

$50,000

$20,000

$100,000

BHS is in balance and no new funds are needed.  SOLUTION