Great Subs believes it can increase sales by 50% without any increase in net fixed assets.Earnings after tax are expected to be $2,000.The company pays no dividends.What additional financing will Subs need to finance this growth? Subs' balance sheet currently is as follows:
A) $3,350 surplus -- no additional financing needed
B) $1,650
C) $3,650
D) None of the answers is correct.
Correct Answer:
Verified
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