Calculate the external financing needed given the following information: current sales = $275,000; current sales capacity = 75%; current fixed assets = $40,000; projected future sales = $475,000.
A) $11,818
B) $51,818
C) $12,818
D) $52,818
E) $60,818

Question

Quizplus · Accepted Answer

Explanation:External financing needed = (Projected future sales / Current sales capacity) * Current fixed assets - Current fixed assets= ($475,000 / 0.75) * $40,000 - $40,000= $633,333.33 - $40,000= $11,818

Calculate the External Financing Needed Given the Following Information: Current