Assume the Following Facts About a Firm The Firm's External Funding Requirement for Next Year Is
(Hint

question 26

Multiple Choice

Assume the following facts about a firm: $\begin{array}{lr}\text { Sales } _ {this year }&\$100,000\\\text { Net income }_ {this year }&\$10,000\\\text { Assets }_ {this year }&\$50,000\\\text { Current liabilities }_ {this year }&\$2,000\\\text { Anticipated growth rate }&12\%\\\text { Proposed dividend payout ratio }&60\%\end{array}$
The firm's external funding requirement for next year is
(Hint: You don't have to remember the EFR formula. Just realize that the funding requirement is the growth in assets less that in current liabilities less next year's retained earnings.)

• A) $1,280
• B) ($960)
• C) $1,760
• D) $800

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