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Assets, Accounts Payable and Costs Are Proportional to Sales

Question 45

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Assets, accounts payable and costs are proportional to sales. Debt and equity are not. Sales of Wintergreen, Inc. are expected to increase by 12% next year. Wintergreen is currently Operating at 85% of capacity. The plowback ratio is 60%. What is the external financing need? A) -$809 B) -$433 C) $1,290 D) $1,563 E) $2,043
Assets, accounts payable and costs are proportional to sales. Debt and equity are not. Sales of Wintergreen, Inc. are expected to increase by 12% next year. Wintergreen is currently Operating at 85% of capacity. The plowback ratio is 60%. What is the external financing need? A) -$809 B) -$433 C) $1,290 D) $1,563 E) $2,043 Assets, accounts payable and costs are proportional to sales. Debt and equity are not. Sales of Wintergreen, Inc. are expected to increase by 12% next year. Wintergreen is currently
Operating at 85% of capacity. The plowback ratio is 60%. What is the external financing need?


A) -$809
B) -$433
C) $1,290
D) $1,563
E) $2,043

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