Fontana Painting Had the Following Data for the Most Recent

question 112

Multiple Choice

Fontana Painting had the following data for the most recent year (in millions) .The new CFO believes that the company could improve its working capital management sufficiently to bring its NWC and CCC up to the benchmark companies' level without affecting either sales or the costs of goods sold.Fontana finances its net working capital with a bank loan at an 8% annual interest rate, and it uses a 365-day year.If these changes had been made, by how much would the firm's pre-tax income have increased?

• A) 1, 901
• B) 2, 092
• C) 2, 301
• D) 2, 531
• E) 2, 784

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Definitions:

Retinal Image

The projection of visual stimuli onto the retina, the light-sensitive layer at the back of the eye, forming the basis of visual perception.

Law of Size Constancy

The perceptual principle stating that our perceptions of the size of objects remain constant despite changes in the size of the images they cast on our retinas due to distance.

Visual Angle Theory

The concept that the perception of an object's size is determined by its visual angle and the distance from the observer.

Retinal Image Theory

The hypothesis that the retina captures visual images like a camera, which are then processed by the brain.