The following balance sheet and income statement should be used: Assume that Taylor, Inc. is operating at full capacity. Also assume that all costs, net working capital, and ﬁxed assets vary directly with sales. The debt-equity ratio and the dividend payout ratio are
Constant. What is the projected increase in total assets if sales are projected to increase by 25%?
A) $3,210
B) $3,340
C) $3,690
D) $5,140
E) $5,380

Question

The following balance sheet and income statement should be used:   Assume that Taylor, Inc. is operating at full capacity. Also assume that all costs, net working capital, and ﬁxed assets vary directly with sales. The debt-equity ratio and the dividend payout ratio are
Constant. What is the projected increase in total assets if sales are projected to increase by 25%?
A) $3,210 
B) $3,340 
C) $3,690 
D) $5,140 
E) $5,380

Quizplus · Accepted Answer

The Answer of The following balance sheet and income statement should be used:   Assume that Taylor, Inc. is operating at full capacity. Also assume that all costs, net working capital, and ﬁxed assets vary directly with sales. The debt-equity ratio and the dividend payout ratio are
Constant. What is the projected increase in total assets if sales are projected to increase by 25%?
A) $3,210 
B) $3,340 
C) $3,690 
D) $5,140 
E) $5,380

The Following Balance Sheet and Income Statement Should Be Used