Following is the balance sheet of Cyan Inc.:
Fixed and current assets are fully utilized, and the sales/assets and sales/spontaneous liabilities ratios remain constant. Next year, the firm expects sales to increase by 50 percent. It also expects to retain $2,000 of next year's earnings within the firm. What is the next year's additional external funding requirement, or additional funds needed (AFN) ?
A) No additional funds are required.
B) $3,500
C) $4,500
D) $5,500
E) $6,500
Correct Answer:
Verified
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