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Mahan Corporation ended the year with $70,000 of sales and $35,000 of net assets. The corporation's managers forecast that sales will increase by 10% in
Mahan Corporation ended the year with $70,000 of sales and $35,000 of net assets. The corporation's managers forecast that sales will increase by 10% in the coming year. The corporation has reinvested earnings of $2,000. Assuming the ratio of net assets to sales remains constant, the corporation's required external financing will be _____.
a. $5,500
b. $3,300
c, $1,500
d. $1,000
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