The most recent financial statements for Moose Tours, Inc.follow.Sales for 2009 are projected to grow by 16 percent.Interest expense will remain constant; the tax rate and dividend payout rate will also remain constant.Costs, other expenses, current assets, and accounts payable increase spontaneously will sales.If the firm is operating at full capacity and no new debt or equity is issued, how much external financing is needed to support the 16 percent growth rate in sales?
A)$-10,246
B)-$8,122
C)-$6,708
D)$2,407
E)$3,309

Question

The most recent financial statements for Moose Tours, Inc.follow.Sales for 2009 are projected to grow by 16 percent.Interest expense will remain constant; the tax rate and dividend payout rate will also remain constant.Costs, other expenses, current assets, and accounts payable increase spontaneously will sales.If the firm is operating at full capacity and no new debt or equity is issued, how much external financing is needed to support the 16 percent growth rate in sales?  
A)$-10,246 
B)-$8,122 
C)-$6,708 
D)$2,407 
E)$3,309

Quizplus · Accepted Answer

The Answer of The most recent financial statements for Moose Tours, Inc.follow.Sales for 2009 are projected to grow by 16 percent.Interest expense will remain constant; the tax rate and dividend payout rate will also remain constant.Costs, other expenses, current assets, and accounts payable increase spontaneously will sales.If the firm is operating at full capacity and no new debt or equity is issued, how much external financing is needed to support the 16 percent growth rate in sales?  
A)$-10,246 
B)-$8,122 
C)-$6,708 
D)$2,407 
E)$3,309

The Most Recent Financial Statements for Moose Tours, Inc