A firm has current sales of $32,000.Projected sales for next year are $35,520.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 $2,200.What is the projected external financing need given the following current account values?
A)-$3,532
B)-$1,969
C)-$1,390
D)$231
E)$1,341

Question

A firm has current sales of $32,000.Projected sales for next year are $35,520.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 $2,200.What is the projected external financing need given the following current account values? 
A)-$3,532 
B)-$1,969 
C)-$1,390 
D)$231 
E)$1,341

Quizplus · Accepted Answer

The Answer of A firm has current sales of $32,000.Projected sales for next year are $35,520.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 $2,200.What is the projected external financing need given the following current account values? 
A)-$3,532 
B)-$1,969 
C)-$1,390 
D)$231 
E)$1,341

A Firm Has Current Sales of $32,000