Below Is Selected Data for Gertup Corporation as of 12/31/05

question 5

Multiple Choice

Below is selected data for Gertup Corporation as of 12/31/05:
$$\begin{array} { l r } \text { Total assets } & \$ 5,500 \\\text { Current assets } & 2,750 \\\text { Long-term debt } & 450 \\\text { Current ratio } & 2.5 \\\text { Inventory } & 1,500 \\\text { For year ended 12/31/05 } & \\\text { Sales } & \$ 18,500 \\\text { Cost of goods sold } & 14,800\end{array}$$
-If sales increased by 10% per annum for the next 20 years, sales for year 2025 would be closest to:

• A)$407,000.
• B)$124,459.
• C)$113,000.
• D)$55,500.

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Definitions:

Total Assets

The aggregate of current and fixed assets held by a corporation.

Total Liabilities

The total amount of financial obligations or debts that a company owes to external parties.

Return On Equity

A financial ratio that measures the profitability of a company in relation to the shareholders' equity, indicating how efficiently a company uses its equity to generate profit.

Expected Rate

An estimated percentage or amount, often used in financial projections and calculations like the return on an investment or growth.