A Firm Has the Following Balance Sheet at the End

question 96

Multiple Choice

A firm has the following balance sheet at the end of this year. Next year it expects sales to increase 50% over this year's level of $9,000, and anticipates retaining $2,000 of its earnings. $\begin{array}{lclc}\text { Cash } & \$ 4,000 & \text { Accountspayable } & \$ 2,500 \\\text { Accountsreceivable } & 3,000 & \text { Accrued expenses payable } & 1,000 \\\text { Inventories } & 2,000 & \text { Longterm debt } & 6,000 \\\text { Net fixed assets } & 12,500 & \text { Common stock } & 8,500\\&&\text { Retained earnings } & 3,500\\\text { Total asssets }&\$21,500&\text { Total liabilities and capjital }&\$21,500\end{array}$ According to the unmodified percentage of sales method, the amount of external funds needed next year will be:

• A) $8,750.
• B) $10,750.
• C) $7,000.
• D) None of the above

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Definitions:

Flocculonodular Lobe

A region of the cerebellum involved in the coordination of balance and eye movements.

Lateral Hemispheres

A term related to the outer sections of an organ or structure, often used in reference to the brain's cerebral hemispheres on either side.

Vermis

The central part of the cerebellum, connecting the two hemispheres and involved in coordinating posture and locomotion.

Brainstem

The central trunk of the brain, consisting of the medulla oblongata, pons, and midbrain, controlling vital life functions such as breathing and heart rate.