which one is correct please suggest? QUESTION 39 Getrag expects its sales to increase 20% next year from its current level of $4.7 million. Getrag has current assets of $660,000, net fixed assets of $1.5 million, and current liabilities of $462,000. All assets are expected to grow proportionately with sales. If Getrag has a net profit margin of 10%, what additional financing will be needed to support the increase in sales? Getrag does not pay dividends.   a. $339,600   b. No financing needed, surplus of $224,400   c. No financing needed, surplus of $524,400   d. $283,200

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
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Chapter4: Financial Planning And Forecasting
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which one is correct please suggest?

QUESTION 39

  1. Getrag expects its sales to increase 20% next year from its current level of $4.7 million. Getrag has current assets of $660,000, net fixed assets of $1.5 million, and current liabilities of $462,000. All assets are expected to grow proportionately with sales. If Getrag has a net profit margin of 10%, what additional financing will be needed to support the increase in sales? Getrag does not pay dividends.
      a.
    $339,600
      b.
    No financing needed, surplus of $224,400
      c.
    No financing needed, surplus of $524,400
      d.
    $283,200
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