The following balance sheet and income statement should be used: Hilltop, Inc. is currently operating at 82% of capacity. The proﬁt margin and the dividend payout ratio are constant. Net working capital and ﬁxed assets vary directly with sales. Sales are projected
To increase by 20 percent. What is the external ﬁnancing need?
A) -$736
B) -$487
C) $1,144
D) $5,708
E) $6,768

Question

The following balance sheet and income statement should be used:   Hilltop, Inc. is currently operating at 82% of capacity. The proﬁt margin and the dividend payout ratio are constant. Net working capital and ﬁxed assets vary directly with sales. Sales are projected
To increase by 20 percent. What is the external ﬁnancing need?
A) -$736 
B) -$487 
C) $1,144 
D) $5,708 
E) $6,768

Quizplus · Accepted Answer

The Answer of The following balance sheet and income statement should be used:   Hilltop, Inc. is currently operating at 82% of capacity. The proﬁt margin and the dividend payout ratio are constant. Net working capital and ﬁxed assets vary directly with sales. Sales are projected
To increase by 20 percent. What is the external ﬁnancing need?
A) -$736 
B) -$487 
C) $1,144 
D) $5,708 
E) $6,768

The Following Balance Sheet and Income Statement Should Be Used