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Suppose That Current Assets, Costs, and Accounts Payable Maintain a Constant

Question 359

Multiple Choice

Suppose that current assets, costs, and accounts payable maintain a constant ratio to sales. The firm retains 40% of earnings. If the firm is producing at only 90% capacity, what is the total external financing needed if sales increase 25%? A) $1 B) $34 C) $41 D) $47 E) $94 Suppose that current assets, costs, and accounts payable maintain a constant ratio to sales. The firm retains 40% of earnings. If the firm is producing at only 90% capacity, what is the total external financing needed if sales increase 25%? A) $1 B) $34 C) $41 D) $47 E) $94 Suppose that current assets, costs, and accounts payable maintain a constant ratio to sales. The firm retains 40% of earnings. If the firm is producing at only 90% capacity, what is the total external financing needed if sales increase 25%?


A) $1
B) $34
C) $41
D) $47
E) $94

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