Calculate the External fiNancing Needed Given the Following Information: Current

question 45

Multiple Choice

Calculate the external financing needed given the following information: current sales = $275,000; current sales capacity = 75%; current fixed assets = $40,000; projected future sales = $475,000.

• A) $11,818
• B) $51,818
• C) $12,818
• D) $52,818
• E) $60,818

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Definitions:

Current Account

A country's transactions with the rest of the world, including goods, services, income, and current transfers.

Net Inflow

Net inflow refers to the total incoming resources or capital minus the outgoing resources or capital in a particular time period.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net secondary income, reflecting the difference between a country's savings and its investment.