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:

Haphazard Sampling

A non-systematic and random method of selecting samples, lacking any specific structure or plan.

Cluster Sampling

A probability sampling method in which existing groups or geographic areas, called clusters, are identified. Clusters are randomly sampled and then everyone in the selected clusters participates in the study.

College Cafeteria

A dining establishment located within a college that provides meals to students, faculty, and sometimes the public.

Probability Sampling

Type of sampling procedure in which one is able to specify the probability that any member of the populationwill be included in the sample.