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

question 12

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

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Definitions:

Required Ingredients

Essential components or factors necessary for a specific process or outcome to be successful.

Value Chain

A series of activities that a company performs to deliver a valuable product or service to the market.

Examine

To inspect or scrutinize something carefully in order to understand its nature or to determine its essential features.

Total Quality Management

An organizational approach that seeks continuous improvement in all aspects of operations through the involvement of all employees, aiming to achieve long-term success through customer satisfaction.