Suppose That Team Industries, Inc

question 10

Multiple Choice

Suppose that Team Industries, Inc. currently has the balance sheet shown below, and that sales for the year just ended were $3 million. The firm also has a profit margin of 20 percent, a retention ratio of 30 percent, and expects sales of $6 million next year. If all assets and current liabilities are expected to increase with sales, what amount of additional funds will the company need from external sources?

• A) $2,140,000
• B) $2,320,000
• C) $2,500,000
• D) $4,500,000

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Definitions:

Policy Preferences

Policy preferences are the specific inclinations or desires regarding governmental actions or strategies, reflecting an individual's or group's values, beliefs, or interests.

Process Power

The influence that individuals or groups can exert through their understanding and manipulation of procedural aspects within a system.

Tenor

In literature, the underlying theme or main idea of a work; in music, the high male voice, or part traditionally sung by a tenor.

Tempo

The speed or pace at which something occurs, often used in reference to music or activities.