I need to project additional financing needed using the percent of sales method. Below is the 2020 year end balance sheet for Banner Inc. Sales for 202 were $1,600,000 and are expected to be $2,000,000 during 2021. In addition, we know that Banner plans to pay $90,000 in 2021 dividends and expects projected net income of 4% of sales. All assets are expected in t increase proportionately with sales. On current liabilities are expected to increase proportionately with sales.

Current assets $890,000 Net fixed assets $1,000,000 Total $1,890,000

Accounts payable $160,000 Accrued expenses 100,000 Notes payable 700,000 Long term debt 300,000 Total Liabilities $1,260,000

Common stock (plus paid in capital) 360,000 Retained earning 270,000 Common equity 630,000 Total $1,890,000

Banner's projected additional financing needed for 2021 is:

A - 420,500 B - 430,500 C - 360,500 D - 370,500