Given the Following Information: Assets = $900; Accounts Payable =

Multiple Choice

Given the following information: assets = $900; accounts payable = $110; notes payable = $100; long-term debt = $150; equity = $540; sales = $450; costs = $400; tax rate = 34%; dividends = $16.
50) Costs, assets, and accounts payable maintain a constant ratio to sales. How much external
financing is needed if sales increase 15% and the dividend payout ratio is constant?

A) $81
B) $94
C) $85
D) $106
E) $122