Suppose That Wind Em Corp A) $100,000
B) $250,000
C) $200,000
D) $500,000

question 59

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, how much will spontaneous liabilities increase with the increase in sales?
$$\begin{array} { l r l r r } \text { Assets } && { \text { Iiabilities ard Equity } } \\\text { Current Assets } & \$ 500,000 & \text { Current Liabilities } & \$ 200,000 \\\text { Fixed Assets } & 250,000 & \text { Long-tern Debt } &300,000 \\& & \text { Equity } & 250,000 \\\text { Total Assets } & \$ 750,000 & \text { Total Liabilities and Equity } & \$ 750,000\end{array}$$

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Definitions:

Pelvic Girdle

The skeletal structure in the pelvis area of vertebrates, consisting of hip bones that support the attachment of the lower limbs.

Bone Deposition

The process by which new bone tissue is formed, involving osteoblasts laying down new bone material, crucial for growth and bone healing.

Hormone

Chemical messengers produced by glands that regulate physiological activities by signaling distant organs.

Sarcoplasmic Reticulum

Specialized endoplasmic reticulum in muscle cells; stores and releases calcium ions.