Suppose That Wind Em Corp A) $100,000
B) $250,000
C) $750,000
D) $500,000

question 6

Multiple Choice

Suppose that Wind Em Corp. currently has the balance sheet shown as follows, and that sales for the year just ended were $1 million. The firm also has a profit margin of 10 percent, a retention ratio of 20 percent, and expects sales of $2 million next year. If all assets and current liabilities are expected to grow with sales, what is the necessary increase in assets?
$$\begin{array} { l r l r r } \text { Assets } && { \text { Iiabilities ard Equity } } \\\text { Current Assets } & \$ 500,000 & \text { Current Liabilities } & \$ 200,000 \\\text { Fixed Assets } & 250,000 & \text { Long-tern Debt } &300,000 \\& & \text { Equity } & 250,000 \\\text { Total Assets } & \$ 750,000 & \text { Total Liabilities and Equity } & \$ 750,000\end{array}$$

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Definitions:

Incarcerated

The state of being confined in prison or jail, typically as punishment for committing a crime.

Stigmatized

Negatively evaluated because of a marker that distinguishes them from others.

Negatively Evaluated

Being assessed or perceived in an unfavorable or disapproving manner based on certain criteria or standards.

Perceived Harmfulness

The extent to which an individual believes a substance, behavior, or activity is capable of causing harm or risk.