Goldilochs Inc

question 7

Multiple Choice

Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has $12 million in total assets and $500,000 in current liabilities. The firm currently pays out 25 percent of its net income to shareholders. Assume that all assets and current liabilities are expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds, what is the most sales can grow (in percent) ?

• A) 11.13 percent
• B) 10.84 percent
• C) 10.28 percent
• D) 9.69 percent

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Definitions:

Unstimulating Orphanages

Institutions that provide inadequate sensory, emotional, and intellectual stimulation for the developmental needs of children.

Adopted

A legal process by which an individual becomes the lawful child of parents other than their biological parents, forming a permanent family relationship.

Proprioception

The sense of the relative position of one's own parts of the body and strength of effort being employed in movement.

Locomotion

The ability to move around on one’s own.