Business, 13.06.2021 19:30 prelogical

ababio and sons ltd, a production and distribution company in Adenta , Accra reported sales of ¢3 million in the year ended 2018 but expecting sales to increase by 30 percent in 2019 due to some intensive advertising campaign embarked upon during the latter part of 2018. The company may require additional asset to its existing asset of ¢1.5m but it expects the asset to increase proportional with sales. However, short term liabilities ipl increase by 15% of sales increase. Assume that the net profit is 10% and the company's dividend calls for a 60 % payout ratio. The company is operating at full capacity and the director believes that the external capital ¢ 200,000 is available to the company but would want to know whether it is sufficient to finance to increase . using the equation method, what will be the additional financing required? show working and explain or comment on your results

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ababio and sons ltd, a production and distribution company in Adenta , Accra reported sales of ¢3 mi...