The Retail Company Currently Has Assets of $3,000,000 and Accounts

question 51

Multiple Choice

The Retail Company currently has assets of $3,000,000 and accounts payable of $200,000.The firm's sales last year were $10,000,000 with a net profit margin of 1%.If the firm anticipates next year's sales to grow by 8% over that of last year and the firm pays out 25% of its net income in dividends,then what is the estimated external funds requirement for Retail?

• A) $16,000
• B) $81,000
• C) $143,000
• D) $240,000

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Definitions:

External World

The reality outside of an individual's mind, including physical objects, events, and other entities existing independently of personal thoughts and perceptions.

Mental Activity

The cognitive functions and processes that occur within the mind, such as thinking, reasoning, and imagining.

Hypnosis

A trance-like state characterized by increased focus, concentration, and suggestibility, often used for therapeutic purposes.

Meditation

A practice where an individual uses a technique – such as mindfulness, or focusing the mind on a particular object, thought, or activity – to train attention and awareness, and achieve a mentally clear and emotionally calm and stable state.