Goldilochs Inc

question 45

Multiple Choice

Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has $10.5 million in total assets and $1 million in current liabilities. The firm currently pays out 75 percent of its net income to shareholders. Assume that all assets and current liabilities are expected to grow with sales. If Goldilochs does not want to rely on any external sources of funds, what is the most sales can grow (in dollars) ?

• A) $187,900
• B) $299,900
• C) $328,800
• D) $364,100

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Definitions:

Subject Matter Jurisdiction

The authority of a court to hear cases pertaining to a specific type of issue or within a particular category of legal matters.

Concurrent Federal Jurisdiction

A situation where both federal and state courts have the authority to hear and decide on the same case.

Diversity of Citizenship Jurisdiction

Jurisdiction in federal courts arising from cases between citizens of different U.S. states or between U.S. citizens and foreign nationals or entities, intended to prevent state bias.

Writ of Certiorari

A court order in which a higher court reviews a decision of a lower court.