Marshall Manufacturing Is Projecting a Growth of 10% in Sales

question 104

Multiple Choice

Marshall Manufacturing is projecting a growth of 10% in sales next year, and a dividend payout of 80%. Based on their growth they are projecting an external financing requirement of $200. They had the following results this year: Sales of $18,000; Current liabilities of $500; Return on Sales of 10%. Calculate what Marshall has projected for assets next year. (Assume that assets, current liabilities, and income grow with the level of sales.)

• A) $3,967
• B) $4,885
• C) $7,106
• D) $7,810

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Definitions:

Small Intestine

A part of the digestive system where most of the digestion and absorption of nutrients takes place.

Nutrients

Substances obtained from food that are essential for the growth, repair, and maintenance of a healthy body, including vitamins, minerals, proteins, fats, and carbohydrates.

Food Deprivation

The condition of having insufficient food to meet basic nutritional needs, leading to hunger or starvation.

Salivary Glands

Glands that furnish moisture that helps in tasting and digesting food.