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Great Subs Believes It Can Increase Sales by 50% Without

Question 48

Multiple Choice

Great Subs believes it can increase sales by 50% without any increase in net fixed assets. Earnings after tax are expected to be $2,000. The company pays no dividends. What additional financing will Subs need to finance this growth? Subs' balance sheet currently is as follows: Great Subs believes it can increase sales by 50% without any increase in net fixed assets. Earnings after tax are expected to be $2,000. The company pays no dividends. What additional financing will Subs need to finance this growth? Subs' balance sheet currently is as follows: A) $3,350 surplus -- no additional financing needed B) $1,650 C) $3,650 D) None of the above are correct.


A) $3,350 surplus -- no additional financing needed
B) $1,650
C) $3,650
D) None of the above are correct.

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