Use the Following Information and the Percentage-Of-Sales Method to Answer

question 53

Multiple Choice

Use the following information and the percentage-of-sales method to answer the following question(s) .
Below is the 2017 year-end balance sheet for Richmond Enterprises.Sales for 2017 were $1 600,000 and are expected to be $2 000,000 during 2018.In addition, we know that Banner plans to pay $90,000 in 2018 dividends and expects projected net income of 4% of sales.(For consistency with the answer selections provided, round your forecast percentages to two decimals.)
Richmond Enterprises Balance Sheet
December 31, 2017

-Richmond's projected discretionary financing needed for 2018 is

• A)$420,000.
• B)$440,000.
• C)$360,000.
• D)$370,000.

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Definitions:

Empathy-Altruism Model

A theory suggesting that empathetic concern for others can motivate altruistic behavior, acting out of genuine concern for the welfare of others.

Norm of Reciprocity

A social norm that expects individuals to help those who have helped them, fostering mutual aid and cooperation.

Empathy Gap

The difficulty in understanding or predicting the feelings and needs of others, especially when there is a difference in emotional state or situation.

Prosocial Behavior

Efforts made to assist others, which involve practices like providing help, distributing, making donations, working together, and engaging in voluntary work.