Suppose That Wind Em Corp

question 75

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, how much will spontaneous liabilities increase with the increase in sales?

• A) $833,300
• B) $240,000
• C) $366,957.14
• D) $1,125,000

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Definitions:

Standardized Score

A score that has been transformed to fit a normal distribution, allowing for comparison across different tests or populations.

Myers-Briggs

A personality inventory that categorizes individuals into 16 distinct personality types based on preferences in how they perceive the world and make decisions.

Separate Dichotomies

A concept involving the division of aspects into two completely opposite groups or categories.

TAT

Stands for Thematic Apperception Test, a projective psychological test that assesses a person's patterns of thought, attitudes, observational capacity, and emotional responses to ambiguous test materials.