XYZ Company has assets that are traditionally 80% of sales, and its liabilities traditionally are

30% of sales. Sales for this year are $70,000 and sales for next year are projected to be $120,000
with a profit margin of 6%.

No owner payout will be taken. Using the percentage of sales
method, XYZ will need ________ of additional financing.
A) $7,200
B) $17,800
C) $25,000
D) $30,000
E) No financing is required.

B

Business

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