BJ Company's net working capital and all of its expenses vary directly with sales. The firm is currently operating at 86 percent of capacity. The firm wants no additional external financing of any kind. The tax rate is 21 percent and the dividend payout ratio is fixed at 25 percent. Which statement related to next year's pro forma statements must be correct?
(A) Total equity will remain constant at this year's endng value
(B) The maximum rate of sales increase is four percent
(C) The fem cannot exceed its internal rate of growth
(D) Accounts payable will increase at the same rate as fixed assets.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “BJ Company's net working capital and all of its expenses vary directly with sales. The firm is currently operating at 86 percent of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following will require a recalculation of weighted-average shares outstanding for all years presented? A) Stock dividends and stock splits. B) Stock dividends but not stock splits. C) Stock splits but not stock dividends.
Answers (1)
The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram. The production of the product in April was 870 units, but production had been budgeted for 850 units.
Answers (1)
You sell 10 cups of lemonade for 1.50 each. You spent $5.00 on lemons and $1.00 for a bag of ice. What is your profit or loss?
Answers (1)
The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below.
Answers (1)
Using the aggregate demand-aggregate supply model, predict what happens in the short run when the consumer confidence index falls as consumers become pessimistic about their economic prospects? a.
Answers (1)
New Questions in Business
Which term refers to the beginning of the constitution?
Answers (1)
The risks of a focus strategy include: a. decisions by focused competitors to use their resources to serve a wider range of customers' needs. b.
Answers (1)
Floyd Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4 percent per year. The expected return on the market is 13 percent, and Treasury bills are yielding 4.5 percent.
Answers (1)
Martin is offered an investment where for $ 6 comma 000 today, he will receive $ 6 comma 420 in one year. He decides to borrow $ 6 comma 000 from the bank to make this investment.
Answers (2)
Sun Yip, the marketing manager at Bryte Systems Inc., decides to enter into foreign markets as his company has surplus amounts of fluorescent light bulbs because of an accidental overrun in manufacturing.
Answers (1)