The most recent financial statements for Matrix Chip are shown below. Assets, costs, and current liabilities are proportional to sales. Matrix Chip maintains a constant 50% dividend payout. No external financing is possible. What is the maximum percentage increase in sales that can be sustained?
A) 5.55%
B) 8.14%
C) 10.22%
D) 22.72%

Question

The most recent financial statements for Matrix Chip are shown below.   Assets, costs, and current liabilities are proportional to sales. Matrix Chip maintains a constant 50% dividend payout. No external financing is possible. What is the maximum percentage increase in sales that can be sustained?
A) 5.55% 
B) 8.14% 
C) 10.22% 
D) 22.72%

Quizplus · Accepted Answer

The Answer of The most recent financial statements for Matrix Chip are shown below.   Assets, costs, and current liabilities are proportional to sales. Matrix Chip maintains a constant 50% dividend payout. No external financing is possible. What is the maximum percentage increase in sales that can be sustained?
A) 5.55% 
B) 8.14% 
C) 10.22% 
D) 22.72%

The Most Recent Financial Statements for Matrix Chip Are Shown