The Most Recent Financial Statements for Heng Co

question 12

Multiple Choice

The most recent financial statements for Heng Co.are shown here:
Assets and costs are proportional to sales.The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio.What is the maximum increase in sales that can be sustained next year assuming no new equity is issued?

• A) $4,808.12
• B) $5,211.17
• C) $5,887.48
• D) $5,894.60
• E) $6,666.67

---

Definitions:

Negative Control

An experiment or trial that does not include the factor being tested and is used to ensure that the experiment works by way of comparison.

Gene Regulation

The process of turning genes on and off to ensure that the appropriate genes are expressed at the right times and in the right places.

Eukaryotes

Organisms whose cells contain a nucleus enclosed within a membrane, including animals, plants, fungi, and protists.

Prokaryotes

Organisms whose cells lack a nucleus and other membrane-bound organelles, including bacteria and archaea.