which one is correct please confirm?QUESTION 35CU Tech expects sales next year will be $4.8 million, a 25% increase over current sales. CU has total assets of $2.24 million, and all assets will increase proportionately with sales. CU has $1.49 million in current liabilities and a current ratio of 1.60 to 1. What total financing will CU need to support the expected sales increase? a.$234,400 b.No financing needed, surplus of $139,700 c.$48,800 d.$187,500

You need to calculate new lavel of assets and liablities and if assets in next year is more than…

Answered: CU Tech expects sales next year will be…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 11P: Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors...

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QUESTION 35

CU Tech expects sales next year will be $4.8 million, a 25% increase over current sales. CU has total assets of $2.24 million, and all assets will increase proportionately with sales. CU has $1.49 million in current liabilities and a current ratio of 1.60 to 1. What total financing will CU need to support the expected sales increase?

a.
$234,400

b.
No financing needed, surplus of $139,700

c.
$48,800

d.
$187,500

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