Nu Tek Has Sales of $19,700, Net Income of $3,517

question 77

Multiple Choice

Nu Tek has sales of $19,700, net income of $3,517, fixed assets of $18,282, current liabilities of $2,940, current assets of $3,018, long-term debt of $7,600, and equity of $10,760. Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. Next year's sales are projected to increase by 7 percent. What is the amount of external financing needed if the firm is currently operating at full capacity?

• A) −$596
• B) −$141
• C) $583
• D) $912
• E) −$482

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Definitions:

Manipulative

Behaving in a skillful manner to influence or control others to one's advantage, often with deceitful or dishonest intentions.

Participation

The act of taking part or being involved in an activity or event, often implying a degree of involvement that influences the outcome.

Workplace Changes

Modifications or adjustments in the work environment, processes, or policies aimed at improving efficiency, employee satisfaction, or adapting to new conditions.

Employee Resistance

The opposition or pushback from employees against new policies, practices, or changes within an organization, often due to fear of the unknown or loss of control.