Jams and Jellies Has Net Fixed Assets of $879,000,long-Term Debt

question 27

Multiple Choice

Jams and Jellies has net fixed assets of $879,000,long-term debt of $368,000,current liabilities of $136,000,and net working capital of $13,400.The retention ratio is 50 percent and the profit margin is 5.8 percent.Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity.What is the external financing need if the current sales of $748,000 are projected to increase by 3 percent?

• A)$8,212.12
• B)$11,506.60
• C)$6,390.18
• D)$1,387.58
• E)$4,429.24

---

Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often characterized by global trade and cultural exchange.

World Bank Loans

Financial aid provided by the World Bank to countries for development projects aimed at reducing poverty and promoting economic development.

Global South

A term used to describe countries considered to be less economically developed and often located in the southern hemisphere, highlighting economic and social disparities.

Conflict Theories

A framework in sociology and social psychology that emphasizes the social, political, or material inequality of a social group, critiquing the broad socio-political system.