Suppose that Team Industries,Inc.currently has the balance sheet shown as follows,and that sales for the year just ended were $3 million.The firm also has a profit margin of 20 percent,a retention ratio of 30 percent,and expects sales of $6 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?

A)$2,140,000
B)$2,320,000
C)$2,500,000
D)$4,500,000

Question

Suppose that Team Industries,Inc.currently has the balance sheet shown as follows,and that sales for the year just ended were $3 million.The firm also has a profit margin of 20 percent,a retention ratio of 30 percent,and expects sales of $6 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?

A)$2,140,000 
B)$2,320,000 
C)$2,500,000 
D)$4,500,000

Quizplus · Accepted Answer

The Answer of Suppose that Team Industries,Inc.currently has the balance sheet shown as follows,and that sales for the year just ended were $3 million.The firm also has a profit margin of 20 percent,a retention ratio of 30 percent,and expects sales of $6 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?

A)$2,140,000 
B)$2,320,000 
C)$2,500,000 
D)$4,500,000

Suppose That Team Industries,Inc