Solved

Following Is the Balance Sheet of Cyan Inc

Question 37

Multiple Choice

Following is the balance sheet of Cyan Inc.: 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
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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents