XYZ Company has assets that are traditionally 85% of sales, and its liabilities traditionally are

50% of sales. Sales for this year are $50,000 and sales for next year are projected to be $150,000
with a profit margin of 10%.

No owner payout will be taken. Using the percentage of sales
method, XYZ will need ________ of additional financing.
A) $70,000
B) $15,000
C) $52,500
D) $20,000
E) No financing is required.

D