Executives at Fruit Corporation Forecast Increased Sales of 10% Over

Executives at Fruit Corporation forecast increased sales of 10% over the next year.$2,000,000 of assets will change in constant proportion to sales.If the addition to retained earnings is estimated to be $50,000, determine the required external financing.

A) $150,000
B) $200,000
C) $250,000
D) $300,000
E) $350,000 New Investment - addition to retained earnings = .1 × 2,000,000 - 50,000 = $150,000.