Current Assets = $150 Net Fixed Assets = $200 Accounts Payable = $50 Long Term Debt = $150 Equity = $150 Sales = $800 Costs = $600 Taxes = $68

Refer to Data Table A (above). Assume that costs, current assets, and accounts payable increase at the same rate as sales, but debt and equity do not. Also assume that 80% of net income is paid out in dividends, and the firm's fixed assets are being used at 90% capacity. The tax rate is constant. If sales grow by 20%, calculate external funds needed (EFN). [Choose closest answer]

• A.

  $18.32

• B.

  $28.32

• C.

  $4.32

• D.

  -$15.68