Porter's Corner Has Sales of $4,650 Net Income of $490

question 86

Multiple Choice

Porter's Corner has sales of $4,650 net income of $490, total assets of $5,820, and total debt of $2,760. Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $5,487. What is the amount of the external financing needed?

• A) −$28
• B) $469
• C) $611
• D) $1,048
• E) $823

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Definitions:

Inca

A South American indigenous empire with an advanced society, thriving in what is now Peru from the 13th to the 16th century until the Spanish conquest.

Hydraulic Theory

A theory suggesting that the development and maintenance of a civilization is closely linked to its ability to create and manage large-scale water control systems.

River Valleys

Geographical areas formed by the land surrounding a river, often characterized by fertile soil and significant for early human civilizations.

Hydraulic Theory

A theory that suggests the control and management of water resources played a crucial role in the development of early civilizations.