Suppose That Team Industries,Inc

question 47

Multiple Choice

Suppose that Team Industries,Inc.currently has the balance sheet shown as follows,and that sales for the year just ended were $3 million.The firm also has a profit margin of 20 percent,a retention ratio of 30 percent,and expects sales of $6 million next year.If all assets and current liabilities are expected to increase with sales,what amount of additional funds will the company need from external sources?

• A)$2,140,000
• B)$2,320,000
• C)$2,500,000
• D)$4,500,000

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