Kizspy | Question: 21
(Choose 1 answer)
The table below is financial statement of Velapure Inc.
Income Statement
Sales
$8,500
COGS
$7,210
Depreciation
$400
EBIT
$890
$40
$850
$310
Net Income
Dividend
$540
$330
Additional to retained earnings
$210
All costs and net working capital vary directly with sales. Sales are projected to decrease by 3 percent. What is the projected decrease in accounts receivable?
A. $30.60
B. $39.90
C. $70.50
Interest paid
Taxable Income
Taxes
D. $84.20
Balance Sheet
Cash
$1,700
Accounts payable
$2,175
Accounts receivable
$1,020
Long-term debt
$525
Inventory
$2,480
Common stock
$3,000$1,700
Total
$5,200
Retained earnings
Net fixed assets
$2,200
Total Assets
$7,400
Total liabilities & equity
$7,400
