LM Products Has Total Assets of $48,900, Total Debt of $21,750

question 89

Multiple Choice

LM Products has total assets of $48,900, total debt of $21,750, long-term debt of $18,100, owners' equity of $27,150, dividends paid of $1,925, and net income of $5,500. Assume net working capital and all company costs increase directly with sales. Also assume the tax rate and the dividend payout ratio are constant and the company is currently operating at full capacity. What is the external financing need if sales increase by 4 percent?

• A) −$1,908
• B) −$804
• C) −$397
• D) $1,201
• E) $1,344

Compare and contrast distributions using graphical representations.

Identify outliers and understand their impact on data interpretation.

Analyze real-world data to draw conclusions about populations or trends.

Understand the concepts of variability and consistency within data sets.

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Definitions:

Cycloalkenes

Unsaturated hydrocarbons containing one or more carbon-carbon double bonds within a cyclic structure.

Unstable

A state of a chemical compound where it has the potential to change or react under certain conditions, often leading to a more energetically favorable state.

Zaitsev's Rule

A rule in chemistry that predicts the preferred alkene product in elimination reactions, favoring the formation of the more substituted alkene.

Heat of Hydrogenation

The change in enthalpy that occurs when a compound is hydrogenated, typically used to measure the stability of unsaturated compounds.