Assume Stansfield Corporation is utilizing its fixed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains unchanged. If sales increase by 20%, what will total fixed assets be?
A) $256 million
B) $286 million
C) $313 million
D) $359 million
E) $470 million

Question

Assume Stansfield Corporation is utilizing its fixed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains unchanged. If sales increase by 20%, what will total fixed assets be?
A) $256 million 
B) $286 million 
C) $313 million 
D) $359 million 
E) $470 million

Quizplus · Accepted Answer

The Answer of   Assume Stansfield Corporation is utilizing its fixed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains unchanged. If sales increase by 20%, what will total fixed assets be?
A) $256 million 
B) $286 million 
C) $313 million 
D) $359 million 
E) $470 million

Assume Stansfield Corporation Is Utilizing Its Fixed Assets at 90