A Firm Has the Following Account Balances for This Year

question 29

Multiple Choice

A firm has the following account balances for this year.Sales for the year are $420,000.Projected sales for next year are $441,000.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 $23,500 next year.Retained earnings is expected to increase by $5,400 next year.What is the projected external financing need?

• A) -$14,150
• B) -$6,850
• C) $32,850
• D) $36,000
• E) $56,350

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Nazis

Members of the National Socialist German Workers' Party, a far-right political party in Germany led by Adolf Hitler from 1920 to 1945, responsible for the Holocaust and World War II atrocities.

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