In 2018, Mango Corporation Had Net Income of $5 Million

question 6

Multiple Choice

In 2018, Mango Corporation had net income of $5 million on sales of $50 million.The 2018 balance sheet showed current liabilities of $12 million, long-term debt of $18 million and equity of $45 million.The sales forecast for 2017 is $54 million.If Mango pays no dividends, what is the forecasted increase or decrease in equity at the end of 2019?

• A)$49.5 million
• B)$ 4.5 million
• C)$5.4 million
• D)$(5.4)million

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