A firm has current sales of $42,000.Projected sales for next year are $44,000.The percentage of sales approach is used for pro forma purposes.All balance sheet accounts,except long-term debt and common stock,change according to that approach.The expected increase in retained earnings is $2,500.What is the projected external financing need given the following current account values?

A) -$3,532
B) -$1,969
C) -$1,390
D) $987
E) $1,341

Question

A firm has current sales of $42,000.Projected sales for next year are $44,000.The percentage of sales approach is used for pro forma purposes.All balance sheet accounts,except long-term debt and common stock,change according to that approach.The expected increase in retained earnings is $2,500.What is the projected external financing need given the following current account values?

A) -$3,532 
B) -$1,969 
C) -$1,390 
D) $987 
E) $1,341

Quizplus · Accepted Answer

11ea6d0e_c3d0_01b2_b3c7_91d218784623_TB1223_00

A Firm Has Current Sales of $42,000