Wagner Industrial Motors,which Is Currently Operating at Full Capacity,has Sales

question 29

Multiple Choice

Wagner Industrial Motors,which is currently operating at full capacity,has sales of $29,000,current assets of $1,600,current liabilities of $1,200,net fixed assets of $27,500,and a 5 percent profit margin.The firm has no long-term debt and does not plan on acquiring any.The firm does not pay any dividends.Sales are expected to increase by 4.5 percent next year.If all assets,short-term liabilities,and costs vary directly with sales,how much additional equity financing is required for next year?

• A)-$259.75
• B)-$201.19
• C)$967.30
• D)$1,099.08
• E)$1,515.25

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Definitions:

Lambdoid

Refers to the lambdoid suture, a dense, fibrous connective tissue joint that unites the parietal bones with the occipital bone in the human skull.

Coronal

Pertaining to the frontal plane that divides the body into anterior and posterior (front and back) sections.

Fontanels

Soft spots on a baby's head where the skull bones have not yet fused, allowing for growth of the brain and skull.

Sutures

Fibrous joints between the bones of the skull that allow for growth during infancy and fuse later in life.