A Firm Has the Following Account Balances for This Year

question 11

Multiple Choice

A firm has the following account balances for this year. Sales for the year are $600,000. Projected sales for next year are $642,000. 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) $13,120
• C) $18,520
• D) $20,720
• E) $25,620

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Audience Members

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Desired Changes

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Implementation Plan

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Noncompetitive Proposals

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