A Firm Has the Following Balance Sheet: Sales for the Year

question 96

Multiple Choice

A firm has the following balance sheet: Sales for the year just ended were $400, and fixed assets were used at 80 percent of capacity, but its current assets were at optimal levels.Sales are expected to grow by 5 percent next year, the profit margin is 5 percent, and the dividend payout ratio is 60 percent.How much additional funds (AFN) will be needed?

• A) $4.6
• B) −$6.4 (Surplus)
• C) $2.4
• D) −$4.6 (Surplus)
• E) $0.8

Understand the legal and constitutional parameters of job-related activism, including picketing.

Know the legal requirements and prohibitions regarding personal information in job applications.

Comprehend the legal framework for managing employment discrimination and workers' rights.

Understand the objectives and benefits of management development programs.

---

Definitions:

Percentage Analysis

A financial analysis technique that involves expressing each item in a financial statement as a percentage of a base amount to assess the financial health and performance of a company.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, usually presented in a structured manner for a specific period.

Return On Total Assets

A profitability ratio that measures the profitability of total assets without considering how the assets are financed, computed as income plus interest expense divided by average total assets.

Profitability

A measure of how effectively a company generates profit from its revenues or assets.