Assume That Gatsby Enterprises Has Sales of $83 Million and Fixed

question 97

Multiple Choice

Assume that Gatsby Enterprises has sales of $83 million and fixed assets of $22.4 million in 2013. The corporation utilizes the percent-of-sales method of financial forecasting. If Gatsby is expected to generate sales of $94 million in 2014, what will the firm's investment in fixed assets be? The minimum fixed asset expansion costs $4,000,000.

• A) $19.8 million
• B) $26.4 million
• C) $16.2 million
• D) $25.4 million

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Definitions:

Spiteful Behaviours

Actions motivated by a desire to hurt, annoy, or offend someone, typically driven by ill will or malice.

Interpretation

The act of explaining the meaning of something, often in a particular way or from a specific perspective.

Significance

The measure of how meaningful or important a finding is, often determined through statistical analysis in research.

Thoughts

The mental process of thinking, which involves forming ideas, concepts, and planning.