-Suppose Kooshy Wishes to Maintain a Minimum $10 Million Cash

question 90

Multiple Choice

-Suppose Kooshy wishes to maintain a minimum $10 million cash balance,accounts receivable are forecast to be 15% of sales,and inventory is expected to be 12% of forecast sales.Also,the firm plans to add $35 million to fixed assets (depreciate the additional assets over seven years) .What is the pro forma level of total assets if sales are forecasted to increase 20%?

• A) $487
• B) $435
• C) $519
• D) $615

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Definitions:

A Misdemeanor

A criminal offense that is less serious than a felony and generally punishable by fines, penalties, or a short term of imprisonment.

Petty Offenses

Minor legal violations that typically result in a small fine or penalty and do not entail significant legal consequences.

Tort Offenses

Legal wrongdoings that arise from breach of duty primarily fixed by law, where the duty is towards individuals rather than contractual obligations.

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A legal doctrine that makes an individual or entity responsible for damages or harm caused by their actions, regardless of fault or negligence.