Assume That Gerber and Sons Has Sales of $83 Million

question 2

Multiple Choice

Assume that Gerber and Sons has sales of $83 million and fixed assets of $22.4 million in 2018.The corporation utilizes the percentage-of-sales method of financial forecasting.If Gerber is expected to generate sales of $94 million in 2019, 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:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify the laws across states.

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