The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.

CROSBY, INC.

2017 Income Statement

Sales $ 980,760

Costs 792,960

Other expenses 20,060

Earnings before interest and taxes $ 167,740

Interest paid 14,740

Taxable income $ 153,000

Taxes (21%) 32,130

Net income $ 120,870

Dividends $ 39,250

Addition to retained earnings 81,620

CROSBY, INC.

Balance Sheet as of December 31, 2017

Assets Liabilities and Owners’ Equity

Current assets Current liabilities

Cash $ 27,920 Accounts payable $ 71,720

Accounts receivable 42,630 Notes payable 17,620

Inventory 95,910 Total $ 89,340

Total $ 166,460 Long-term debt $ 170,000

Fixed assets Owners’ equity

Net plant and equipment $ 455,980 Common stock and paid-in surplus $ 140,000

Retained earnings 223,100

Total $ 363,100

Total assets $ 622,440 Total liabilities and owners’ equity $ 622,440

If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales?

Alandowner entered into a written agreement with a real estate broker whereby the broker would receive a commission of 10% of the sale price if he procured a "ready, willing, and able buyer" for the landowner's property and if the sale actually proceeded through closing. the broker found a buyer who agreed in writing to buy the property from the landowner for $100,000, the landowner's asking price. the buyer put up $6,000 as a down payment. the agreement between the landowner and the buyer contained a liquidated damages clause providing that, if the buyer defaulted by failing to tender the balance due of $94,000 at the closing date, damages would be 10% of the purchase price. the landowner included that clause because she was counting on using the proceeds of the sale for a business venture that would likely net her at least $10,000. the buyer became seriously ill and defaulted. when he recovered, he demanded that the landowner return his $6,000, and the landowner refused. the broker also demanded the $6,000 from the landowner and was refused. the broker and the buyer filed separate suits against the landowner, with the buyer pleading impossibility of performance. the two cases are consolidated into a single case. how should the court rule as to the disposition of the $6,000?

Which of the following tasks would be a line cook's main responsibility? oa. frying french fries ob. chopping onions oc. taking inventory of stocked dry goods od. paying invoices

Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive