A Firm Has Total Assets of $262,000,long-Term Debt of $105,000,stockholders

Multiple Choice

A firm has total assets of $262,000,long-term debt of $105,000,stockholders' equity of $111,000,and current liabilities of $46,000.The retention ratio is 60 percent and the profit margin is 6 percent.Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity.What is the external financing need if the current sales of $275,000 are projected to increase by 10 percent?

A) $210
B) $14,340
C) $6,200
D) $10,890
E) $10,710