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?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which sentence or phrase in the passage suggests an action of integrity? On Monday, Mr. Blackwell, the creative head of an advertising firm, instructed all his employees to make teams of two each and create a presentation for a new product by Friday.
Answers (2)
During the past month, Jennifer Johnson had income of $3,870 but had to use some of her liquid savings to cover her monthly expenses. This resulted in a decrease in net worth of $490. This means Jennifer's monthly expenses for the month were:
Answers (1)
Buying what describes the purchase of financial products with borrowed money.
Answers (2)
Which of the following statements are true if the efficient market hypothesis holds? It implies that future events can be forecast with perfect accuracy. It implies that prices reflect all available information.
Answers (1)
Career Services, Incorporated sold some office equipment for $52,000 on December 31, 2021. The journal entry to record the sale would include a gain or a loss of how much if the original cost of the equipment was $80,000 with a residual value of
Answers (1)
New Questions in Business
Yogen Früz is a successful chain of frozen yogurt shops originating in Canada. Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai, Oman, Qatar, Bahrain, and
Answers (1)
What is the difference between marginal cost and marginal revenue? Marginal cost is the money earned from selling one more unit of a good.
Answers (1)
The standard number of hours that should have been worked for the output attained is 10,000 direct labor hours and the actual number of direct labor hours worked was 10,500.
Answers (1)
Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. - You purchase a box of Belgium chocolate - Honda expands its factory in Ohio. - Your parents buy a new house from a local builder.
Answers (1)
Which of the following best represents the pricing behavior of firms in a monopolistically competitive industry? A) Unykdrugs, Inc.
Answers (1)