XYZ Company Has Assets That Are Traditionally 75% of Sales

question 15

Multiple Choice

XYZ Company has assets that are traditionally 75% of sales, and its liabilities traditionally are 20% of sales. Sales for this year are $100,000 and sales for next year are projected to be $200,000 with a profit margin of 8%. The owners take a 60% payout. Using the percentage of sales method, XYZ will need

• A) $70,000
• B) $68,400
• C) $48,600
• D) $50,000 of additional financing.
• E) No new financing is required.

Understand the evolution of management thought from a focus on tasks and processes to an emphasis on human relations and employee needs.

Recognize the role of management in fostering innovation and taking initiative within an organization.

Understand the importance of setting performance standards based on systematic observation and experimentation.

Identify and analyze different approaches to management, including operational, human relations, and quality control approaches.

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Definitions:

Income Effect

The change in an individual's or economy's purchasing power due to a change in real income.

Human Capital Investment

The process of increasing the education, skills, and abilities of the workforce to enhance productivity and economic growth.

Legislation

Laws created through the process of writing, enacting, and implementing statutes by a legislative body.

Desirable Jobs

Positions of employment that are highly sought after due to factors such as high pay, benefits, job security, and work-life balance.