Suppose That Wind Em Corp

question 16

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 projected increase in retained earnings?

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

---

Definitions:

Points Of Contrast

Specific aspects in which two or more things differ significantly from each other.

Detail Missing

A situation where specific or important information is absent or has been omitted.

Compares And Contrasts

The act of identifying similarities and differences between two or more subjects or objects.

Diesel Generators

Machines that convert diesel fuel into electrical power, commonly used in places without connection to the power grid, or as an emergency power supply.