A Firm Has the Following Account Balances for This Year

question 99

Multiple Choice

A firm has the following account balances for this year. Sales for the year are $420,000. Projected sales for next year are $441,000. The percentage of sales approach is used for pro forma purposes. All balance sheet accounts, except long-term debt and common stock, change according to that approach. The firm plans to decrease the long-term debt balance by $23,500 next year. Retained earnings is expected to increase by $5,400 next year. What is the projected external financing need?

• A) -$14,150
• B) -$6,850
• C) $32,850
• D) $36,000
• E) $56,350

Recognize the role and forms of property income.

Comprehend the concept and implications of the Lorenz curve and Gini coefficient in measuring income distribution.

Distinguish between different types of income.

Evaluate the effectiveness of comparing incomes in assessing well-being.

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Definitions:

E-Procurement

The use of online systems and tools to conduct the purchasing process and acquire goods and services for a business, aiming to improve efficiency and reduce costs.

Auctions

Competitive bidding processes where goods or services are sold to the highest bidder.

Internet Purchasing

The process of buying goods and services online, leveraging digital platforms and e-commerce websites for transactions.

Negotiation Strategies

Approaches taken by supply chain personnel to develop contractual relationships with suppliers.