How much additional equity financing is needed for next year


XYZ Company is currently operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,350, net fixed assets of $27,500, and 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 3.5 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?

A. -$259.75

B. -$326.19

C. -$529.50

D. $1,099.08

E. -$374.3

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Finance Basics: How much additional equity financing is needed for next year
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