Assume the firm pays no dividends

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Reference no: EM131978841

1. Given the following information: current assets = $400; fixed assets = $400; long-term debt = $455; equity = $300; sales = $470; costs = $400; tax rate = 34%. Suppose that assets and costs maintain a constant ratio to sales. What is the total external financing needed if sales increase 25%? Assume the firm pays no dividends.

Select one: a. $380.25 b. $143.75 c. $167.25 d. $183.75 e. $142.25

2. Based on the data below, with a collection period of 30 days what are cash collections in Q3? (format $xxx as needed, no cents)

Beginning A/R $335

a. Collection Period 45

b. Collection Period 60

c. Collection Period 30

Sales:

Q1 $545

Q2 $598

Q3 $575

Q4 $795

Reference no: EM131978841

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