Assume sales grow 20%, the cost of goods sold is 38% of sales, inventory falls from 5% of sales to 3%, and accounts receivable fall from 13% of sales to 10%. How much long-term debt is required in this scenario?
Description Project Problem One: Please find attached the 2017 financial statements for Aquatic Supplies Co. Also appearing are management’s forecasts for how individual financial statement items will vary in the future. The company expects sales to grow 12% next year. Aquatic Supplies finances all of its needs with 10-year long-term debt at 10% interest. a. […]