Suppose That Wind Em Corp

question 72

Multiple Choice

Suppose that Wind Em Corp. currently has the balance sheet shown below, 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, what is the projected increase in retained earnings?

• A) $1,050,000
• B) $1,240,000
• C) $1,366,957.14
• D) $1,840,000

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Definitions:

Intravascular Fluid

Fluid within the blood vessels, including blood plasma and other components, important for maintaining blood pressure and volume.

KCl

Potassium chloride, a metal halide salt used in medicine, food processing, and scientific applications, often for treating potassium deficiencies.

Metabolic Acidosis

A condition characterized by an excess of acid in the body due to either increased acid production or decreased acid excretion.

Hyperglycemia

A condition characterized by an excessively high level of glucose in the blood.