The most recent financial statements for 7 Seas, Inc.are shown here: Assets, costs, and current liabilities are proportional to sales.Long-term debt and equity are not.The company maintains a constant 50 percent dividend payout ratio.Like every other firm in its industry, next year's sales are projected to increase by exactly 16 percent.What is the external financing need?
A)$1,317.16
B)$1,411.16
C)$1,583.09
D)$2,211.87
E)$2,349.98

Question

The most recent financial statements for 7 Seas, Inc.are shown here:  Assets, costs, and current liabilities are proportional to sales.Long-term debt and equity are not.The company maintains a constant 50 percent dividend payout ratio.Like every other firm in its industry, next year's sales are projected to increase by exactly 16 percent.What is the external financing need?
A)$1,317.16 
B)$1,411.16 
C)$1,583.09 
D)$2,211.87 
E)$2,349.98

Quizplus · Accepted Answer

The Answer of The most recent financial statements for 7 Seas, Inc.are shown here:  Assets, costs, and current liabilities are proportional to sales.Long-term debt and equity are not.The company maintains a constant 50 percent dividend payout ratio.Like every other firm in its industry, next year's sales are projected to increase by exactly 16 percent.What is the external financing need?
A)$1,317.16 
B)$1,411.16 
C)$1,583.09 
D)$2,211.87 
E)$2,349.98

The Most Recent Financial Statements for 7 Seas, Inc