A Firm's Net Assets Equal 55% of Sales

question 33

Multiple Choice

A firm's net assets equal 55% of sales. The firm expects a sales increase of $78,000 next year with $6,500 of that amount reinvested in the firm. What is the external financing need?

• A) $49,400
• B) $21,200
• C) $28,600
• D)$36,400

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Definitions:

Vegetable Oil

Oil extracted from the seeds or other parts of fruits and plants, used for cooking and industrial purposes.

Double Bonds

Chemical bonds between atoms where two pairs of electrons are shared, making the bond stronger and shorter than a single bond.

Aquaporins

A class of proteins that form channels in the cell membrane and facilitate the transport of water between cells.

Plasma Membrane

The lipid bilayer that surrounds a cell, regulating the entry and exit of substances.