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

question 39

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:

Valid Syllogism

A logical argument in which, if the premises are true, the conclusion must necessarily be true.

Enthymeme

A syllogism missing one of the premises or the conclusion, which must be inferred by the reader or listener.

Missing Premises

Arguments or assertions that are not explicitly stated but are required for an argument's conclusion to be logical.

Syllogism

A form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion.