choose the correct answer

22) Chinx inc. recently reported the following balance sheet (in millions of dollars):

a. $2.34 M b. $8.2 M c. $2.8 M d. $2.2 M e. None of the above

23. Referring to question 22, calculate the spontaneous increase in liabilities for 2021. * a. $0.4 M b. $0.5 M c. $0.7 M d. $0.33 M e. None of the above

24. Referring to question 22, what is the additional financing requirement (in millions) for 2021 using the AFN equation? * a. $0.18 M b. $0.24 M c. $0.28 M d. $0.36 M e. $0.44 M

25. Based on the data in the previous question (22), how much can sales grow above the 2020 level of $60 million without requiring any additional funds? * a. 16.25% b. 16.88% c. 17.65% d. 17.85% e. 18.10%

Chinx Inc. Balance Sheet of December 31, 2020 (Millions of Dollars) Cash $3.0 3.0 Accounts receivable Inventories $2.0 1.5 $3.5 A/P & accrued liabilities Notes Payable Total current liabilities Long-term debt Common equity Total liabilities and equity 3.0 5.0 $11.0 3.0 $14.0 Total current assets Fixed assets Total assets 7.5 $14.0 In 2020. sales were $60 million. In 2021, management believes that sales will increase by 20%. The profit margin is expected to be 5%, and the dividend payout ratio is targeted at 40%. No excess capacity exists, so the company's assets and spontaneous liabilities will increase proportionately with an increase in sales. Calculate the projected increase in assets for 2021