Using the AFN Formula Approach, Calculate the Total Assets of Harmon

question 7

Multiple Choice

Using the AFN formula approach, calculate the total assets of Harmon Photo Company given the following information: Sales this year = $3,000; increase in sales projected for next year = 20 percent; net income this year = $250; dividend payout ratio = 40 percent; projected excess funds available next year = $100; accounts payable = $600; notes payable = $100; and accrued wages and taxes = $200. Except for the accounts noted, there were no other current liabilities. Assume that the firm's profit margin remains constant and that the company is operating at full capacity.

• A) $3,000
• B) $2,200
• C) $2,000
• D) $1,200
• E) $1,000

Comprehend the components that constitute the financial budgets of a business.

Understand the structure and components of the master budget.

Recognize the importance of a collaborative approach to budget preparation for enhancing motivation and communication.

Identify the sequence and logical relationships in the preparation of budgets and the master budget.

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Definitions:

Employee Turnover

The rate at which employees leave a workforce and are replaced by new personnel over a certain period.

Wage Rates

The amount of compensation or payment in terms of money given to an employee by an employer in exchange for work performed.

Job Analysis

The process of studying and collecting information about the duties, responsibilities, and outcomes of a job.

Job Description

An official document that outlines the duties, responsibilities, required qualifications, and reporting relationships of a specific job.