Tulley Appliances Inc. projects next year’s sales to be $20 million. Current sales are $15 million Answer

Problem: 14-4 Financial Forecasting-percent of Sales. Tulley Appliances Inc. projects next year’s sales to be $20 million. Current sales are $15 million, based on current assets of $5 million and fixed assets of $5 million. Firms net profit margin is 5 percent after taxes. Tulley forecasts that its current assets will rise in direct proportion…

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