A firm has the following balance sheet. It expects sales to increase 30% over the previous year's level of $9,000, and anticipates retaining $3,000 of its earnings. According to the un modified percentage of sales method, the amount of external funds needed will be:
A)$2,400.
B)$6,450.
C)$3,450.
D)None of the above

Question

A firm has the following balance sheet. It expects sales to increase 30% over the previous year's level of $9,000, and anticipates retaining $3,000 of its earnings.  According to the un modified percentage of sales method, the amount of external funds needed will be:
A)$2,400. 
B)$6,450. 
C)$3,450. 
D)None of the above

Quizplus · Accepted Answer

The Answer of A firm has the following balance sheet. It expects sales to increase 30% over the previous year's level of $9,000, and anticipates retaining $3,000 of its earnings.  According to the un modified percentage of sales method, the amount of external funds needed will be:
A)$2,400. 
B)$6,450. 
C)$3,450. 
D)None of the above

A Firm Has the Following Balance Sheet