A services firm does all its business in cash only. The firm projects a cash balance of $4 000 in its account after all taxes and costs are paid. The owners plan to invest $7 000 and pay a dividend of $1 000. How much net new financing is needed?
A)$7 000
B)$4 000
C)$5 000
D)$6 000

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The Answer of A services firm does all its business in cash only. The firm projects a cash balance of $4 000 in its account after all taxes and costs are paid. The owners plan to invest $7 000 and pay a dividend of $1 000. How much net new financing is needed?
A)$7 000
B)$4 000
C)$5 000
D)$6 000

A Services Firm Does All Its Business in Cash Only