Great Subs Believes It Can Increase Sales by 50% Without

question 9

Multiple Choice

Great Subs believes it can increase sales by 50% without any increase in net fixed assets. Earnings after tax are expected to be $2,000. The company pays no dividends. What additional financing will Subs need to fund this growth? Subs' current balance sheet is as follows: $\begin{array}{|l|r|r|r|}\hline \text { Cash } & \$ 2,500 & \text { Accounts Payable } & \$ 5,600 \\\hline \text { Accounts Rec. } & 4,400& \text { Notes Payable } & 10,000 \\\hline \text { Inventory } & 6,000 &\text { Long-term Debt } & 15,000 \\\hline \text { Fixed Assets, net } & 47,700& \text { Stockholders' Equity } & 30,000 \\\hline&\$60,600&&\$60,600\\\hline\end{array}$

• A) $3,350 surplus -- no additional financing needed
• B) $1,650
• C) $3,650
• D) None of these are correct

Understand the concept of cognitive dissonance and its role in attitude change.

Apply knowledge of persuasion techniques to specific contexts and scenarios.

Analyze the effects of cognitive biases and dissonance on decision making and belief systems.

Evaluate methods for reducing prejudice and improving intergroup relations.

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Definitions:

Political Elites

A small group of people who hold significant power and influence in a political system, often shaping policies and decisions.

Economic Valorization

The process of assigning economic value to something, often influencing its perception and importance in society.

Unpaid Labor

Work performed without monetary compensation, often in the context of domestic chores, volunteer activities, or internships.

Blogging

The act of writing and publishing content on a web platform or blog, often reflecting an individual's opinions, interests, or expertise.