Goldilochs Inc

question 75

Multiple Choice

Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has $10.5 million in total assets. The firm's chief financial officer is projecting a 20 percent increase in sales. If the firm's sales do increase by 20 percent, it is expected that spontaneous liabilities will increase by $500,000. The firm currently pays out 30 percent of its net income to shareholders. Assuming that all assets are expected to grow with sales, how much in additional funds will Goldilochs need from external sources to fund the expected growth?

• A) $340,000
• B) $299,000
• C) $321,000
• D) $360,000

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Definitions:

Phosphorus Cycle

A biogeochemical cycle that describes the movement of phosphorus through the lithosphere, hydrosphere, and biosphere.

Ecological Efficiency

The efficiency with which energy is transferred from one trophic level to the next in a food chain.

Trophic Level

The position that an organism occupies in a food chain, defined by how it gains its energy, usually ranging from producers to apex predators.

Energy

The capacity to do work or produce change, existing in various forms such as kinetic, potential, and thermal.