J&J Construction Had the Following Results for This Year: Sales

question 113

Multiple Choice

J&J Construction had the following results for this year: Sales of $20,000; Assets of $10,000; Current liabilities of $200; Return on Sales of 10%. If they are projecting a growth in sales of 20% and a dividend payout of 50%, calculate their external financing required. (Assume that assets, current liabilities, and income grow at the same rate as sales.)

• A) $520
• B) $760
• C) $1,140
• D) $1,380

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Definitions:

Brain Stem

The Brain Stem is the lower extension of the brain where it connects to the spinal cord, responsible for controlling vital life functions such as breathing, heart rate, and blood pressure.

GLP-1

Glucagon-like peptide-1, a hormone involved in the regulation of blood sugar levels and often targeted in the treatment of type 2 diabetes.

Metabolism

An organism’s chemical and physical breakdown of food and the process of converting it into energy. Also, an organism’s biochemical transformation of various substances, as when the liver breaks down alcohol into acetylaldehyde.

Appetite

The natural desire to satisfy a bodily need, especially for food.