Suppose That Runner Industries Currently Has the Balance Sheet Shown

question 49

Multiple Choice

Suppose that Runner Industries currently has the balance sheet shown as follows, and that sales for the year just ended were $5 million. The firm also has a profit margin of 10 percent, a retention ratio of 20 percent, and expects sales of $7 million next year. If fixed assets have enough capacity to cover the increase in sales and all other assets and current liabilities are expected to increase with sales, what amount of additional funds will the company need from external sources to fund the expected growth?

• A)$0
• B)$140,000
• C)$220,000
• D)$180,000

Recognize the significance of information systems in managing hazardous materials in the workplace.

Understand the distinctions between different types of stress and their effects on individuals.

Familiarize with health and safety legislation and the responsibilities of employers, supervisors, and workers.

Identify the key sources of job-related stress.

---

Definitions:

Corporate Criminal Liability

The legal principle that a corporation, as an entity, can be held accountable for committing criminal acts.

Strict Liability Rule

A regulation imposing absolute responsibility on certain persons or entities for damages or losses, regardless of fault or intention.

Squeeze-Out

A strategy used by majority shareholders to pressure minority shareholders into selling their shares, often at unfavorable terms.

Minority Shareholder

An investor who owns less than 50% of a company's shares, typically having limited influence over corporate decisions.