Firms A and Beach have Sales of $1,000,000 this year and are both projected to grow their Sales at 15% next year. This y

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Firms A And Beach Have Sales Of 1 000 000 This Year And Are Both Projected To Grow Their Sales At 15 Next Year This Y 1 (18.67 KiB) Viewed 71 times

Firms A and Beach have Sales of $1,000,000 this year and are both projected to grow their Sales at 15% next year. This year Firm Ais NOT operating at full capacity Imeaning it is not using all of its equipment to manufacture their products, they might be using only 80% of the equipment). Then in order to accommodate the projected Sales growth for next year Firm A will need external funds (EFN) than Firm B, which is operating at full capacity this year (meaning it is using all of its equipment to manufacture their product), all else equal the same amount of less neither of the forms will need external funds (EN) more