Given the Following Information: Assets = $900; Accounts Payable =

question 294

Multiple Choice

Given the following information: assets = $900; accounts payable = $110; notes payable = $100; long-term debt = $150; equity = $540; sales = $450; costs = $400; tax rate = 34%; dividends = $16.
50) Costs, assets, and accounts payable maintain a constant ratio to sales. How much external
financing is needed if sales increase 15% and the dividend payout ratio is constant?

• A) $81
• B) $94
• C) $85
• D) $106
• E) $122

---

Definitions:

Holder In Due Course

A term relating to negotiable instruments, denoting a party that has received an instrument in good faith, for value, and without notice of any defects or claims against it.

Intermediary Banks

Financial institutions that serve as a middleman between the payer and the payee in transactions, particularly in international wire transfers.

Payment Orders

Instructions to transfer money from one bank account to another, often used in international trade and electronic funds transfers.

Fund Transfer

The movement of money from one account to another, either within the same financial institution or across different ones.