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