Gupta Corporation Has Forecasted Its Need for External Funding in the Following

question 44

Multiple Choice

Gupta Corporation has forecasted its need for external funding in the following year. It needs to raise $2 million in either debt or equity. It would like to minimize its need for external funding without decreasing its projected growth. Which of the following would reduce its need for additional funding?

• A)An increase in the dividend payout ratio
• B)An increase in days' sales outstanding
• C)An increase in accounts payable
• D)A decrease in inventory turnover

Grasp the comprehensive framework of revenue recognition and its steps.

Compare and contrast the multiple-step and single-step income statements.

Calculate and interpret gross profit, income from operations, and profit margins.

Understand the principles underlying the calculation of gross and net profit margins.

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Definitions:

Lewis Structure

A graphical representation of molecules showing how valence electrons are distributed among atoms, and where dots and lines represent electrons and bonds, respectively.

Water

A molecule composed of two hydrogen atoms bonded to one oxygen atom, essential for all forms of life.

Helium

The second lightest and second most abundant element in the universe, a noble gas that remains liquid at the lowest temperatures.

Lewis Structure

A diagrammatic method for representing the valence electron configuration of atoms, ions, and molecules, indicating bonds and lone pairs.