Use the following information to answer the question:
Sales for 2000 are projected to double; no new equipment is expected to be purchased or sold in 2000. Depreciation expense along with preferred stock and common stock will remain unchanged in 2000. Current assets, accounts payable, accrued expenses, COGS, and selling expenses vary at a constant percentage of sales. Notes payable, long- term debt, preferred stock, and common stock are scheduled to stay the same.
-Projected additional funds needed in the year 2000 are: (current assets and current liabilities except notes payable vary directly with sales)
A) $16,600
B) - $7,400
C) $7,400
D) $26,600

Question

Use the following information to answer the question:
    Sales for 2000 are projected to double; no new equipment is expected to be purchased or sold in 2000. Depreciation expense along with preferred stock and common stock will remain unchanged in 2000. Current assets, accounts payable, accrued expenses, COGS, and selling expenses vary at a constant percentage of sales. Notes payable, long- term debt, preferred stock, and common stock are scheduled to stay the same.
-Projected additional funds needed in the year 2000 are: (current assets and current liabilities except notes payable vary directly with sales)
A) $16,600 
B) - $7,400 
C) $7,400 
D) $26,600

Quizplus · Accepted Answer

The Answer of Use the following information to answer the question:
    Sales for 2000 are projected to double; no new equipment is expected to be purchased or sold in 2000. Depreciation expense along with preferred stock and common stock will remain unchanged in 2000. Current assets, accounts payable, accrued expenses, COGS, and selling expenses vary at a constant percentage of sales. Notes payable, long- term debt, preferred stock, and common stock are scheduled to stay the same.
-Projected additional funds needed in the year 2000 are: (current assets and current liabilities except notes payable vary directly with sales)
A) $16,600 
B) - $7,400 
C) $7,400 
D) $26,600

Use the Following Information to Answer the Question