Peerless Believes That Its Sales Next Year Will Increase 20

question 14

Multiple Choice

Peerless believes that its sales next year will increase 20 percent from the current level of $800,000. Management calculates that assets must increase $110,000 to support the new sales level, and current liabilities will increase $70,000. What total financing will be needed?

• A) $40,000
• B) $1,600
• C) $33,600
• D) $8,000

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