The Most Recent Financial Statements for Moose Tours, Inc

question 21

Multiple Choice

The most recent financial statements for Moose Tours, Inc. follow. Sales for 2009 are projected to grow by 16 percent. Interest expense will remain constant; the tax rate and dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously will sales. If the firm is operating at full capacity and no new debt or equity is issued, how much external financing is needed to support the 16 percent growth rate in sales?

• A)$-10,246
• B)-$8,122
• C)-$6,708
• D)$2,407
• E)$3,309

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Definitions:

Realized

Describes outcomes or results that have been achieved or attained, especially in the context of goals, objectives, or potential.

Intentional

Intentional refers to doing something with purpose or on purpose, indicating actions that are deliberate and planned.

Restructuring Strategy

A corporate management term referring to the act of reorganizing the legal, ownership, operational, or other structures of a company to make it more profitable or better organized for its present needs.

Merger

The combination of two or more companies into a single entity, often to leverage synergies, expand markets, or enhance efficiencies.