Nu Tek Has Sales of $19,700, Net Income of $3,517

question 77

Multiple Choice

Nu Tek has sales of $19,700, net income of $3,517, fixed assets of $18,282, current liabilities of $2,940, current assets of $3,018, long-term debt of $7,600, and equity of $10,760. Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. Next year's sales are projected to increase by 7 percent. What is the amount of external financing needed if the firm is currently operating at full capacity?

• A) −$596
• B) −$141
• C) $583
• D) $912
• E) −$482

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