Suppose that TV Industries,Inc.currently has the balance sheet shown as follows,and that sales for the year just ended were $5 million.The firm also has a profit margin of 15 percent,a retention ratio of 25 percent,and expects sales of $5.5 million next year.If all assets and current liabilities are expected to increase with sales,what amount of additional funds will the company need from external sources to fund the expected growth?

A)$0
B)$6,250
C)$206,250
D)$12,500

Question

Suppose that TV Industries,Inc.currently has the balance sheet shown as follows,and that sales for the year just ended were $5 million.The firm also has a profit margin of 15 percent,a retention ratio of 25 percent,and expects sales of $5.5 million next year.If all assets and current liabilities are expected to increase with sales,what amount of additional funds will the company need from external sources to fund the expected growth?

A)$0 
B)$6,250 
C)$206,250 
D)$12,500

Quizplus · Accepted Answer

The Answer of Suppose that TV Industries,Inc.currently has the balance sheet shown as follows,and that sales for the year just ended were $5 million.The firm also has a profit margin of 15 percent,a retention ratio of 25 percent,and expects sales of $5.5 million next year.If all assets and current liabilities are expected to increase with sales,what amount of additional funds will the company need from external sources to fund the expected growth?

A)$0 
B)$6,250 
C)$206,250 
D)$12,500

Suppose That TV Industries,Inc