Assume That Fake Stone, Inc

question 46

Multiple Choice

Assume that Fake Stone, Inc.is operating at full capacity.Also assume that all costs, net working capital, and fixed assets vary directly with sales.The debt-equity ratio and the dividend payout ratio are constant.What is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?

• A)$19,800
• B)$21,070
• C)$23,600
• D)$24,240
• E)$26,810

---

Definitions:

Functional Group

A specific group of atoms within a molecule that is responsible for a characteristic chemical reaction of that molecule.

Chemical Properties

Characteristics of a substance that become evident during a chemical reaction, revealing the composition of the substance and how it reacts under certain conditions.

Organic Molecules

Compounds containing carbon atoms bonded to hydrogen atoms, often along with other elements, that are the basis of life on Earth.

Cellulose

Cellulose is a complex carbohydrate that serves as a primary structural component of plant cell walls, providing rigidity and resistance to mechanical stress.