Suppose That Team Industries, Inc A) $2,140,000
B) $2,320,000
C) $2,500,000
D) $4,500,000

question 49

Multiple Choice

Suppose that Team Industries, Inc. currently has the balance sheet shown as follows, and that sales for the year just ended were $3 million. The firm also has a profit margin of 20 percent, a retention ratio of 30 percent, and expects sales of $6 million next year. If all assets and current liabilities are expected to increase with sales, what amount of additional funds will the company need from external sources?
$$\begin{array} { l r l l l } \text { Assets } & & { \text { Liabilities and Equity } } \\\text { Current Assets } & \$ 2,000,000 & \text { Current Liabilities } & \$ 2,000,000 \\\text { Fixed Assets } & 2,500,000 & \text { Long-tern Debt } & 1,500,000 \\& & \text { Equity } & 1,000,000 \\\text { Total Assets } & \$ 4,500,000 & \text { Total Liabilities ard Equity } & \$ 4,500,000\end{array}$$

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Definitions:

SIECUS

An acronym for the Sexuality Information and Education Council of the United States, an organization that advocates for comprehensive sexuality education.

Sexual Debut

The occasion of a person's first experience of sexual intercourse.

Abstinence-Only

An educational approach that promotes abstaining from all sexual activities until marriage as the only method of preventing STIs and unwanted pregnancies.

Comprehensive Sexuality Education

Educational programs that aim to equip people with knowledge, skills, attitudes, and values to make informed decisions about their sexual health and behavior.