Galehouse Gas Stations Inc. expects sales to increase from $1,510,000 to $1,710,000 next year. Galehouse believes that net assets (Assets − Liabilities) will represent 30 percent of sales. His firm has an 8 percent return on sales and pays 45 percent of profits out as dividends. a. What effect will this growth have on funds?

Cash position reduces by -$24,760

Explanation:

If Gatehouse sales increases as expected the increase will be

1,710,000 - 1,510,000 = $200,000

Net assets is expected to represent 50% of sales, so this sales increase is expected to have Asset Buildup of:

0.50 * 200,000 = $100,000

Asset has a negative balance so it is -$100,000

Return on sales is 8% of the new sales value:

0.080 * 1,710,000 = $136,800 (profit)

45% of profit is paid out as dividend

0.45 * 136,800= -$61,560

It is negative as it represents cash going out

Total cash position = -100,000 + 136,800 - 61,560

Total cash position = -$24,760

Cash position reduces by -$24,760

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answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.