In 2016 Mango Corporation Had Net Income of $5 Million

question 39

Multiple Choice

In 2016 Mango Corporation had net income of $5 million on sales of $50 million. The 2016 balance sheet showed current liabilities of $12 million, long-term debt of $18 million and equity of $45 million. The sales forecast for 2017 is $54 million. If Mango pays no dividends, what is the forecasted increase or decrease in equity at the end of 2017?

• A) $49.5 million
• B) $ 4.5 million
• C) $5.4 million
• D) $(5.4) million

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Definitions:

Motion Parallax

A depth cue in visual perception where objects closer to the viewer move faster across the visual field than objects further away.

Binocular Disparity

The difference in the visual images on the retinae of the two eyes that provides an important cue for depth perception.

Linear Perspective

A depth cue that parallel lines appear to converge in the distance and objects appear smaller as their distance from the observer increases, contributing to the perception of depth.

Apparent Convergence

The perception of two parallel lines appearing to come together at a distance.