Consider the Following Information for Smart Products: Total Assets=$1000; Sales=$1540;

question 7

Multiple Choice

Consider the following information for Smart Products: total assets=$1000; sales=$1540; net profit margin=12%; dividend payout ratio=40%; accounts payable=$308.If sales are forecast to increase 30%,what is the "short cut" estimate of external funds required (EFR) ?

• A) $64
• B) $208
• C) $300
• D) $462

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Definitions:

ESP

Extrasensory perception, the claimed ability to gain information without relying on known physical senses or deducing from previous experience.

Parapsychology

The study of paranormal and psychic phenomena, including telepathy, precognition, and extrasensory perception.

Sensation

The way in which our sense organs and nervous system perceive and depict the energy of stimuli around us.

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.