Goldilochs Inc

question 46

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. The firm's chief financial officer is projecting a 25 percent increase in sales. The firm has $1.25 million in accounts payable and $1,500,000 in long-term debt (bonds) . The firm currently pays out 20 percent of its net income to shareholders. Assuming that all assets and spontaneous liabilities are expected to grow with sales, how much in additional funds will Goldilochs need from external sources to fund the expected growth?

• A) $902,700
• B) $812,500
• C) $821,000
• D) $746,600

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Definitions:

External Attribution

The process of attributing the cause of a person's behavior to situational factors outside the individual.

Social Schemas

Cognitive frameworks that help individuals organize and interpret information about social environments and interactions.

Stereotypes

Widely held but fixed and oversimplified images or ideas of a particular type of person or thing, often based on generalizations.

Person Perception

The process by which individuals form impressions of others based on cues from social interactions and appearances.