Solved

Assets, Accounts Payable and Costs Are Proportional to Sales

Question 336

Multiple Choice

Assets, accounts payable and costs are proportional to sales. Debt and equity are not. Sales of Wintergreen, Inc. are expected to increase by 7% next year. Wintergreen is currently Operating at maximum capacity. Wintergreen does not pay a dividend. Given this projection, which One of the following statements is correct concerning next year's pro forma statement for Wintergreen Inc. if the percentage of sales approach is used? A) Costs are projected to be $11,311. B) Net income is projected to be $1,986. C) The projected retained earnings is $11,406. D) The long-term debt is projected to be $7,062. E) The EFN is projected to be $52.
Assets, accounts payable and costs are proportional to sales. Debt and equity are not. Sales of Wintergreen, Inc. are expected to increase by 7% next year. Wintergreen is currently Operating at maximum capacity. Wintergreen does not pay a dividend. Given this projection, which One of the following statements is correct concerning next year's pro forma statement for Wintergreen Inc. if the percentage of sales approach is used? A) Costs are projected to be $11,311. B) Net income is projected to be $1,986. C) The projected retained earnings is $11,406. D) The long-term debt is projected to be $7,062. E) The EFN is projected to be $52. Assets, accounts payable and costs are proportional to sales. Debt and equity are not. Sales of Wintergreen, Inc. are expected to increase by 7% next year. Wintergreen is currently
Operating at maximum capacity. Wintergreen does not pay a dividend. Given this projection, which
One of the following statements is correct concerning next year's pro forma statement for
Wintergreen Inc. if the percentage of sales approach is used?


A) Costs are projected to be $11,311.
B) Net income is projected to be $1,986.
C) The projected retained earnings is $11,406.
D) The long-term debt is projected to be $7,062.
E) The EFN is projected to be $52.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q331: All else the same, sustainable growth will

Q332: The internal growth rate of a firm

Q333: Which of the following statements regarding financial

Q334: One of the primary benefits of aggregation

Q335: What four elements are incorporated in financial

Q337: If a firm is to grow at

Q338: How would you respond to a business

Q339: What does financial planning allow firms to

Q340: Determining the amount of liquidity needed by

Q341: If a firm has the option of

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents