A Firm Has Current Sales of $56,000 A)$64
B)$480
C)$987
D)$1,480
E)$39,321

A firm has current sales of $56,000. Projected sales for next year are $60,000. The percentage of sales approach is used for pro forma purposes. All balance sheet accounts, except long-term debt and common stock, change according to that approach. The expected increase in retained earnings is $3,100. What is the projected external financing need given the following current account values?
$\begin{array}{lrr}\text { Current assets } & \$ & 10,700 \\\text { Net fixed assets } & \$ & 26,000 \\\text { Current liabilities } & \$ & 7,800 \\\text { Long-term debt } & \$ & 10,400 \\\text { Common stock } & \$ & 5,000 \\\text { Retained earnings } & \$ & 12,400\end{array}$

A) $64
B) $480
C) $987
D) $1,480
E) $39,321