Suppose That Wind Em Corp

question 39

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 necessary increase in assets?

• A) $240,000
• B) $3,333,333.33
• C) $1,366,957.14
• D) $1,840,000

---

Definitions:

Nicotine Tolerance

A physiological state where an individual has reduced sensitivity to nicotine due to continuous exposure, leading to the need for increased consumption to achieve the original effects.

Withdrawal Symptoms

Physical or psychological effects experienced after reducing or stopping the use of a substance that one has become dependent on.

Smoking

The inhalation of the smoke of burning tobacco encased in cigarettes, pipes, or cigars.

Compulsive

Characterized by the irresistible urge to perform certain behaviors or rituals repeatedly, often as a means of coping with anxiety or stress.