Amalgamated Enterprises Is Planning to Purchase Some New Equipment

question 68

Essay

Amalgamated Enterprises is planning to purchase some new equipment.With this new equipment,the company expects sales to increase from $8,000,000 to $10,000,000.A portion of the financing for the purchase of the equipment will come from a $1,000,000 new common stock issue.The company knows that its current assets,fixed assets,accounts payable,and accrued expenses increase directly with sales.The company's net profit margin on sales is 8 percent,and the company plans to pay 40 percent of its after-tax earnings in dividends.A copy of the company's current balance sheet is given below. Amalgamated Enterprises Balance Sheet Prepare a pro forma balance sheet for Amalgamated for next year.

Apply basic algebraic operations to simplify expressions.

Understand and apply the concept of like terms in algebraic expressions.

Manipulate and simplify polynomial expressions.

Solve algebraic equations for specific variables.

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Definitions:

Robert Cialdini

A psychologist known for his work on persuasion, compliance, and negotiation.

Correspondence Bias

The tendency to attribute a person's behavior too much to their personality and too little to the situation they are in.

Fundamental Attribution Error

The inclination to overly focus on individual traits while disregarding environmental influences when evaluating the actions of others.

Correspondence Bias

The tendency to attribute a person's behavior to their personality or disposition, rather than to external factors.