1. CU Tech expects sales next year will be $4.8 million, a 25% increase over current sales. CU has total assets of $2.24 million, and all assets will increase proportionately with sales. CU has $1.49 million in current liabilities and a current ratio of 1.60 to 1. What total financing will CU need to support the expected sales increase?
$234,400
$187,500
No financing needed, surplus of $139,700
$48,800
2. In financial markets, dealers maintain inventory and quotes “bid” and “ask” prices. The ____ price is the price at which the dealer buys securities and is ____ than the ____ price.
A. ask; higher; bid
B. ask; lower; bid
C. bid; higher; ask
D. bid; lower; ask