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-Please Refer to Oscar's Financial Statements

Question 20

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-Please refer to Oscar's financial statements.Assume a constant net profit margin and dividend payout ratio,and further assume all of Oscar's assets and current liabilities vary directly with sales.Assume long-term debt and common stock remain unchanged.Sales are projected to increase by 10 percent.What is the external financing need for next year? A) -$410 B) -$260 C) $235 D) $1,320 E) $7,240 F) None of the above.
-Please refer to Oscar's financial statements.Assume a constant net profit margin and dividend payout ratio,and further assume all of Oscar's assets and current liabilities vary directly with sales.Assume long-term debt and common stock remain unchanged.Sales are projected to increase by 10 percent.What is the external financing need for next year?


A) -$410
B) -$260
C) $235
D) $1,320
E) $7,240
F) None of the above.

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