ECG Monitors Is Forecasting That Sales Next Year Will Be

question 51

Multiple Choice

ECG Monitors is forecasting that sales next year will be $8,640,000, a 20 percent increase over current sales. ECG has total assets of $3,840,000 and all assets will increase proportionately with sales. Of the current liabilities, only accounts payable (now $740,000) will increase with sales. What total financing will be needed by ECG to support the expected sales increase?

• A) $317,600
• B) $620,000
• C) $465,600
• D) $840,400

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Definitions:

Methylxanthines

A class of chemicals including caffeine, theobromine, and theophylline, found in coffee, tea, and cocoa, used medically to relax bronchial muscles.

Asthma Attack

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Cystic Fibrosis

A genetic disorder that affects the lungs and other organs, characterized by thick, sticky mucus that can lead to respiratory and digestive problems.

Genetic Implications

The potential effects or consequences that genetic makeup has on an individual's health, physical traits, or the possibility of transmitting a genetic condition to offspring.