A Firm Has the Following Account Balances for This Year

question 90

Multiple Choice

A firm has the following account balances for this year.Sales for the year are $500,000.Projected sales for next year are $545,000.The percentage of sales approach is used for pro forma purposes.All balance sheet accounts,except long-term debt and common stock,change according to that approach.The firm plans to decrease the long-term debt balance by $5,000 next year.Retained earnings is expected to increase by $3,500 next year.What is the projected external financing need?

• A) $10,520
• B) $14,720
• C) $18,520
• D) $20,720
• E) $25,620

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Definitions:

Rung

A level or step in a ladder diagram, which is a traditional representation of a circuit or network in PLC programming, consisting of conditions leading to one or more outputs.

Nesting

The practice of placing one control structure within another, such as loops or conditional statements in programming.

Ladder Logic

A graphical programming language used in programmable logic controllers (PLCs) to represent electrical circuits, characterized by rungs resembling a ladder.

Branch

A parallel logic path within a rung.