Calculate United's Total Assets If the Firm Expects Sales to Grow

question 39

Multiple Choice

Calculate United's total assets if the firm expects sales to grow 15 percent this year and the earnings after tax will be $50,000. United paid $20,000 in dividends last year and expects to increase dividends 10 percent this year. The firm will need additional financing of $25,000 to finance the expected growth. United started the year with $40,000 in accounts payable, $30,000 in notes payable, and $100,000 in long-term debt. The company is operating at full capacity.

• A) $393,333
• B) $590,000
• C) $226,667
• D) $616,000

Understand the concept of problem-solving techniques and biases in decision-making.

Recognize cognitive biases and their impacts on personal decisions and judgments.

Differentiate between various types of problems and problem-solving strategies.

Identify the role of memory techniques in retaining and recalling information.

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Definitions:

Philosophy Course

An academic class focused on the study of fundamental questions about existence, knowledge, values, reason, mind, and language.

Expectancy-Value Model

A psychological theory that explains motivation by combining individual expectations of success with the value of the success.

Probability of Success

A statistical measure that calculates the likelihood of a desired outcome or successful result happening.

Incentive Value

The attractiveness or appeal of a goal or reward that motivates behavior.