Goldilochs Inc

question 69

Multiple Choice

Goldilochs Inc. reported sales of $8 million and net income of $2 million. The firm has a total asset turnover of 1.2. The firm's chief financial officer is projecting a $6 million increase in sales and that spontaneous liabilities will increase by $1 million automatically. The firm currently pays out 50 percent of its net income to shareholders. Assuming that all assets and current liabilities are expected to grow with sales, how much in additional funds will Goldilochs need from external sources to fund the expected growth?

• A) $1,250,000
• B) $1,750,000
• C) $2,500,000
• D) $2,250,000

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Definitions:

Midbrain

An area of the brainstem that plays a role in vision, hearing, motor control, sleep/wake, arousal (alertness), and temperature regulation.

Medulla

The inner region of an organ or tissue, especially the medulla oblongata which is part of the brainstem controlling vital autonomic functions, such as heartbeat and breathing.

Ascending Neural Pathway

The neural paths by which sensory information from the peripheral nervous system is sent to the central nervous system.

Perceptual Ambiguity

A situation in which a visual stimulus lacks a clear interpretation due to conflicting perceptions or because it can be seen in more than one way.