Following Is the Balance Sheet of Cyan Inc

question 46

Multiple Choice

Following is the balance sheet of Cyan Inc.:
Fixed and current assets are fully utilized, and the sales/assets and sales/spontaneous liabilities ratios remain constant. Next year, the firm expects sales to increase by 50 percent. It also expects to retain $2,000 of next year's earnings within the firm. What is the next year's additional external funding requirement, or additional funds needed (AFN) ?

• A) No additional funds are required.
• B) $3,500
• C) $4,500
• D) $5,500
• E) $6,500