EXLO Company Has Current Sales of $100,000 and Has Projected

question 23

Multiple Choice

EXLO Company has current sales of $100,000 and has projected annual sales growth of 5%, asset growth of 120%, profit margins of 3%, and its dividend policy is to have a dividend payout of 15% of net income per year.Assume there are no spontaneous liabilities.Ignoring income taxes, the sustainable growth rate (SGR) for EXLO is closest to:

• A)0.13%
• B)0.38%
• C)2.17%
• D)4.25%

Identify the normal balances for different types of accounts (assets, liabilities, equity, revenue, and expenses).

Comprehend the structure and purpose of a T-account.

Recognize how transactions affect account balances within the double-entry accounting system.

Analyze the impact of transactions on a company’s financial statements.

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Definitions:

Bureaucratic Structure

A system of administration characterized by hierarchical organization, formal rules and procedures, and a clear division of responsibilities.

Flat Network

A network design where all nodes or devices are interconnected and communicate with each other directly without hierarchical routing.

Formal Organizations

Structured groups managed through clear rules and established procedures aimed at achieving specific goals, often characterized by hierarchical relationships.

Secondary Groups

Large, impersonal social groups whose relationships are typically transient and not emotionally deep.