Suppose That Wind Em Corp

question 47

Multiple Choice

Suppose that Wind Em Corp. currently has the balance sheet shown as follows, 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

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Definitions:

Stakeholder Orientation

An approach in business where a company takes into account the interests and concerns of all parties affected by its operations, including customers, employees, shareholders, and the community.

Secondary Stakeholders

Individuals or groups indirectly affected by a project's outcome or business operations, unlike primary stakeholders who are directly impacted.

Natural Environment

is the physical world that encompasses all living and non-living things occurring naturally on Earth.

Pyramid Of Social Responsibility

Refers to a theoretical model outlining the hierarchy of social responsibilities that a company should adhere to, from fundamental economic responsibilities to philanthropic responsibilities.