Suppose That Wind Em Corp

question 21

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 20 percent,a retention ratio of 30 percent,and expects sales of $22 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)$1,950,000
• B)$2,240,000
• C)$2,366,000
• D)$1,167,000

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Definitions:

Torque

A measure of the force that can cause an object to rotate about an axis, fundamental to the operation of electric motors and mechanical systems.

Rotation

The circular movement of an object around an axis within itself.

Push-to-Test Switch

A type of switch that, when pressed, allows testing of circuits, components, or systems, typically to check functionality or diagnose faults.

Two-Circuit

Refers to a circuit configuration with two distinct paths for electrical current flow, often used for redundant or safety purposes.