Given the Following Information: Current Assets = $400; fiXed Assets

question 14

Multiple Choice

Given the following information: current assets = $400; fixed assets = $500; accounts payable = $100; notes payable = $45; long-term debt = $455; equity = $300; sales = $450; costs = $400; tax
Rate = 34%. Suppose that current assets, costs, and accounts payable maintain a constant ratio to
Sales. If the firm is producing at 80% capacity, what is the total external financing needed if sales
Increase 25%? Assume the firm pays no dividends.

• A) $33.75
• B) $66.25
• C) $143.75
• D) $172.50
• E) $380.25

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Definitions:

Product Material

The raw substances or components used in the manufacturing or construction of a product.

Actuators

Devices that convert energy (usually electrical, hydraulic, or pneumatic) into mechanical motion to perform a physical task or operation.

Physical Information

Information that pertains to the physical world, often gathered through observation or measurement and used in analysis or decision making.

Electrical Signals

Variations in electric currents or electromagnetic fields used to convey information between components or systems.