When "projected sales" is used as the financial planning method for determining expected future changes to balance sheet and income statement account values, what is this called?

A. Percentage of Sales Method

B. Sales Dilution Method

C. Trend Method

D. Common Size Method

Question 2

3.0 Points

The maximum growth rate achievable excluding external financing of any kind is known as:

A. Unlimited Debt Financing
B. Variable Debt Ratio Growth
C. Internal Growth Rate
D. Constant Equity Multiplier

Question 3

3.0 Points

The Franklin Dog & Puppy Motel has current Sales of $15,000 and a Profit Margin of 5%. The firm estimates that Sales will increase by 10% while Costs are expected to vary directly with Sales. What is the pro forma Net Income expected to be?

A. $750
B. $825
C. $1,500
D. $2,250

Question 4

3.0 Points

The Garden City Nursery Corporation currently has $40,000 in Sales and is operating at 27% of full capacity. What is the nursery's full capacity level of Sales?

A. $148,148
B. $10,800
C. $40,000
D. $54,795

Question 5

3.0 Points

The TruFun Toy Company has $550,000 in Sales and $289,000 in Total Assets. This company is operating at 68% of full capacity. What is the Capital Intensity Ratio at the current level of Sales?

A. 0.525
B. 0.903
C. 1.903
D. 0.357