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

question 42

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 long-term debt for 2018 is

• A)$700,000.
• B)$880,000.
• C)$380,000.
• D)$300,000.

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Definitions:

Crust Thickness

The measurement of the Earth's outermost layer's depth, varying between oceanic and continental locations.

Continental

Refers to phenomena or features associated with the continents, in contrast to oceanic aspects.

Oceanic

Pertaining to the ocean, especially the vast, deep areas beyond the continental shelf.

Lithosphere

The rigid outer layer of the Earth, encompassing the crust and the uppermost part of the mantle.