The following information is given: current assets = $400; fixed assets = $500; accounts payable=$100, notes payable $45, long-term de

sales = $450, costs = $400; tax rate= 34%. Suppose that current assets, costs, and accounts payable maintain a constant ratio to sales

If the firm is producing at 80% capacity, what is the total external financing needed if sales increase 25%? Assume the firm pays no dividends

a. $33.75

b. $66.25

c. $143.75

d. $172.50

e. $380.25