China Manufacturing Agents, Inc. is preparing a five-year plan. ...

[BrownTown3]

China Manufacturing Agents, Inc. is preparing a five-year plan. Today, sales are 1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what will the dollar amount of sales be in year five?
 
  What will be an ideal response?

Question 2

Corporation A owns 15 percent of the stock of corporation B. Corporation B pays corporation A 100,000 in dividends in 2002. Corporation A must pay tax on ________.
 
  A) 100,000 of ordinary income
  B)  30,000 of ordinary income
  C)  70,000 of ordinary income
  D)  70,000 of capital gain

[annierak]

Answer to Question 1

FV = 1,000,000(1.1)5 = 1,610,510

Answer to Question 2

B

[BrownTown3]

Thanks for the timely response, appreciate it

[aruss1303]

YES! Correct, THANKS for helping me on my review