XYZ Company has assets that are traditionally 75% of sales, and its liabilities traditionally are
20% of sales. Sales for this year are $100,000 and sales for next year are projected to be $200,000
with a profit margin of 8%.
The owners take a 60% payout. Using the percentage of sales
method, XYZ will need ________ of additional financing.
A) $50,000
B) $48,600
C) $68,400
D) $70,000
E) No new financing is required.
B
You might also like to view...
On January 1, 2018, Busy Beaver, Inc. signed a $315,000, 5 year note payable to buy a new industrial veneer cutter. Busy Beaver plans to use the machine for 10 years and then sell it for its scrap value of $5,000. Using straight-line depreciation, depreciation expense for the year ended December 31, 2018 equals:
A. $31,000. B. $31,500. C. $283,500. D. $284,000.
A news release form usually contains the name, address, and telephone number of the person responsible for issuing the release to the public
Indicate whether the statement is true or false
Goldratt's solution to the variables involved in project scheduling involves the aggregation, or collectivizing, of all project risk in the form of uncertain duration estimates and completion times
Provide practical examples of how this aggregation works to the benefit of the overall project.
A state law that conflicts with the U.S. Constitution will be deemed unconstitutional.
Answer the following statement true (T) or false (F)