Suppose That Wind Em Corp

Suppose that Wind Em Corp.currently has the balance sheet shown as follows,and that sales for the year just ended were $15 million.The firm also has a profit margin of 20 percent,a retention ratio of 30 percent,and expects sales of $22 million next year.If all assets and current liabilities are expected to grow with sales,how much will spontaneous liabilities increase with the increase in sales?

A) $1,950,000
B) $2,240,000
C) $2,366,000
D) $1,167,000

Correct Answer:

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