A firm has sales of $78.000, expenses of $62.400, total assets of $390,000, and total debt of $156,000, Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $85,800. What is the amount of external financing needed? Multiple Choice $39,000 C $274,560 $21,840 O $17161 $171,600

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 4PB: Chang Consulting. Inc., has a $15,000 overdue debt with Supplier No. 1. The company is low on cash,...
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A firm has sales of $78.000, expenses of $62.400, total assets of $390,000, and total debt of $156,000, Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's
sales are projected to be $85,800. What is the amount of external financing needed?
Multiple Choice
$39,000
C
$274,560
$21,840
O
$17161
$171,600
Transcribed Image Text:A firm has sales of $78.000, expenses of $62.400, total assets of $390,000, and total debt of $156,000, Assets and costs are proportional to sales. Debt and equity are not. No dividends or taxes are paid. Next year's sales are projected to be $85,800. What is the amount of external financing needed? Multiple Choice $39,000 C $274,560 $21,840 O $17161 $171,600
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