XYZ Company Has Assets That Are Traditionally 85% of Sales

question 51

Multiple Choice

XYZ Company has assets that are traditionally 85% of sales, and its liabilities traditionally are 50% of sales. Sales for this year are $50,000 and sales for next year are projected to be $150,000 with a profit margin of 10%. No owner payout will be taken. Using the percentage of sales method, XYZ will need

• A) $15,000
• B) $70,000
• C) $52,500
• D) $20,000 of additional financing.
• E) No financing is required.

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Definitions:

Diastolic Pressure

The lower number in a blood pressure reading, representing the pressure in the arteries when the heart rests between beats.

Systolic Pressure

The highest blood pressure measured in the arteries during the contraction phase of the heart cycle.

Korotkoff Sounds

Sounds heard over an artery when blood pressure is determined by the auscultatory method; caused by turbulent flow of blood.

Azygos Vein

A vein running up the side of the thoracic vertebral column, draining blood from the chest wall and upper lumbar region into the superior vena cava.