Given :
expecting sales to increase from 1,550,000 to 1,750,000 next year.
So, net sales = 1,750,000 - 1,550,000 = 200,000
net assets = 50% of the sales = 0.5 * 200,000 = 100,000
the return of firm = 8% of 100,000 = 8,000
profit = 45% of 100,000 = 0.45 * 100,000 = 45,000
So, the increase on funds = 100,000 - ( 8000 + 45,000 ) = 47,000
Part B: if the dividend payout is only 25 % what will the growth have on funds
So, dividend = 25% of 100,000 = 0.25 * 100,000 = 25000
So, the growth of the funds = 100,000 - ( 8000 + 25000 ) = 67,000