ECG Monitors Is Forecasting That Sales Next Year Will Be

question 51

Multiple Choice

ECG Monitors is forecasting that sales next year will be $8,640,000, a 20 percent increase over current sales. ECG has total assets of $3,840,000 and all assets will increase proportionately with sales. Of the current liabilities, only accounts payable (now $740,000) will increase with sales. What total financing will be needed by ECG to support the expected sales increase?

• A) $317,600
• B) $620,000
• C) $465,600
• D) $840,400

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