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A Firm Has Current Sales of $56,000

Question 85

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A firm has current sales of $56,000.Projected sales for next year are $60,000.The percentage of sales approach is used for pro forma purposes.All balance sheet accounts,except long-term debt and common stock,change according to that approach.The expected increase in retained earnings is $3,100.What is the projected external financing need given the following current account values?
A firm has current sales of $56,000.Projected sales for next year are $60,000.The percentage of sales approach is used for pro forma purposes.All balance sheet accounts,except long-term debt and common stock,change according to that approach.The expected increase in retained earnings is $3,100.What is the projected external financing need given the following current account values? A) -$3,532 B) -$1,969 C) -$1,390 D) $987 E) $1,480


A) -$3,532
B) -$1,969
C) -$1,390
D) $987
E) $1,480

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