Suppose That Wind Em Corp A) $833,333
B) $240,000
C) $366,957

question 40

Multiple Choice

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 23 percent, a retention ratio of 40 percent, and expects sales of $20 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?
$$\begin{array} { l r l r r } \text { Assets } && { \text { Iiabilities ard Equity } } \\\text { Current Assets } & \$ 2,000,000 & \text { Current Liabilities } & \$ 2,500,000 \\\text { Fixed Assets } & 8,000,000 & \text { Long-tern Debt } &1,5000,000 \\& & \text { Equity } & 6,000,000 \\\text { Total Assets } & \$ 10,000,000 & \text { Total Liabilities and Equity } & \$ 10,000,000\end{array}$$

---

Definitions:

Secondary Data

Information that has been collected previously by someone else for a different purpose but can be used for another research project or analysis.

Primary Data

Information that is collected firsthand for a specific research purpose or project, through surveys, interviews, experiments, etc.

Data Collection Techniques

Methods used to gather information or data from various sources for analysis and interpretation.

Ethical Implications

The moral impacts or consequences that an action or policy may have, especially in regard to decisions made within professional or organizational contexts.