The Following Balance Sheet and Income Statement Should Be Used

question 161

Multiple Choice

The following balance sheet and income statement should be used: Assume that all costs, assets, and current liabilities of Taylor, Inc. increase directly with sales. Also assume that the tax rate, the dividend payout ratio and profit margin ratio are constant. The firm is
Currently operating at full capacity. What is the external financing need if sales increase by 8
Percent?

• A) -$123.92
• B) -$12.87
• C) -$9.20
• D) $11.68
• E) $108.14

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Definitions:

Physiological State

A condition or state related to the normal functioning of an organism's body and its various systems.

Deep Rest

A state of profound relaxation where the body and mind are allowed to recover and rejuvenate.

Meditation

A practice of focused attention, mindfulness, or contemplation to achieve a mentally clear and emotionally calm and stable state.

Relaxation Response

A physical state of deep rest that changes the physical and emotional responses to stress.