1. Business
  2. Finance
  3. a firm has the following balance sheet it expects sales...

Question: a firm has the following balance sheet it expects sales...

Question details

A firm has the following balance sheet. It expects sales to increase 30% over the previous year's level of $9,000, and anticipates retaining $3,000 of its earnings. Cash $ 4,000 Accounts payable $ 2,500 Accounts receivable 3,000 Accrued expenses payable 1,000 Inventories 2,000 Long-term debt 6,000 Net fixed assets 12,500 Common stock 8,500 Retained earnings 3,500 Total assets $21,500 Total liabilities and capital $21,500 According to the unmodified percentage of sales method, the amount of external funds needed will be:

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution