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The Following Balance Sheet and Income Statement Should Be Used

Question 215

Multiple Choice

The following balance sheet and income statement should be used: The following balance sheet and income statement should be used: Hilltop, Inc. is currently operating at 82% of capacity. The profit margin and the dividend payout ratio are constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 20 percent. What is the external financing need? A) -$736 B) -$487 C) $1,144 D) $5,708 E) $6,768 The following balance sheet and income statement should be used: Hilltop, Inc. is currently operating at 82% of capacity. The profit margin and the dividend payout ratio are constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 20 percent. What is the external financing need? A) -$736 B) -$487 C) $1,144 D) $5,708 E) $6,768 Hilltop, Inc. is currently operating at 82% of capacity. The profit margin and the dividend payout ratio are constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 20 percent. What is the external financing need?


A) -$736
B) -$487
C) $1,144
D) $5,708
E) $6,768

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