Below Is Selected Data for Gertup Corporation as of 12/31/05

question 5

Multiple Choice

Below is selected data for Gertup Corporation as of 12/31/05:
$$\begin{array} { l r } \text { Total assets } & \$ 5,500 \\\text { Current assets } & 2,750 \\\text { Long-term debt } & 450 \\\text { Current ratio } & 2.5 \\\text { Inventory } & 1,500 \\\text { For year ended 12/31/05 } & \\\text { Sales } & \$ 18,500 \\\text { Cost of goods sold } & 14,800\end{array}$$
-If sales increased by 10% per annum for the next 20 years, sales for year 2025 would be closest to:

• A)$407,000.
• B)$124,459.
• C)$113,000.
• D)$55,500.

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Definitions:

Production Costs

The total expenses incurred in the process of producing or manufacturing goods or services, including raw materials, labor, and overheads.

Property Rights

Legal rights to possess, use, and dispose of assets, including the right to benefit or generate income from them.

Sustainable Rate

The level of growth or usage that can be maintained over the long term without depleting resources or causing environmental damage.

Harvest Timber

Harvest timber involves the process of cutting down trees and preparing them for use as building material or other wood products.