The Donut Hut Has Sales of $68,000, Current Assets of $11,300

question 103

Multiple Choice

The Donut Hut has sales of $68,000, current assets of $11,300, net income of $5,100, net fixed assets of $54,900, total debt of $23,800, and dividends of $800.What is the sustainable growth rate?

• A)10.48 percent
• B)11.29 percent
• C)11.79 percent
• D)12.08 percent
• E)12.39 percent

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Definitions:

Bad Debt

Money owed to a company that is not expected to be paid by the debtor, often leading to a write-off.

Credit Policy

A Credit Policy is a set of guidelines that govern the extension of credit to customers, outlining the criteria for extending credit and the terms of repayment.

Investing Decision

Choices made by individuals or firms regarding the allocation of resources to investment opportunities with the aim of achieving additional income or capital gains.

Bad Debts

Money owed to a company that is unlikely to be paid and written off as a loss.