Multiple Choice:

1.The most recent financial statements for Bison Inc. are shown below:

Income Statement

Sales $7,600

Costs 5,180

Net Income 2,420

Balance Sheet

Assets $21,700 Liabilities $9,100

Equity 12,600

Total Assets 21,700 Total L & E 21,700

The company is ready to prepare pro-forma financial statements. They are assuming that assets and costs will be proportional to sales but liabilities are not. The company does NOT want to take on additional debt at this time. No dividends are expected to be paid. Next years sales are projected to increase by 18%. Determine the EFN (External Financing Needed). Round answer to a whole number.

Group of answer choices

$2,541

No external financing would be needed

A$3,906

B$2,016

C$651

D$1,050

2.

What is the 2019 Current Ratio?

Group of answer choices

A9.80 times

B.3.57 times

C.1.28 times

D. 5.73 times

3.

If the debt to equity ratio is 1, then the following must be true:

Group of answer choices

100% of assets are financed by equity

50% of Assets are financed by debt and 50% of assets are financed by equity

100% of assets are financed by debt

There is twice as much debt as equity

8.40 times