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1. The Zippy's Wine Purveyor has forecast a sales growth rate of 20 percent for next year. Current assets, fixed assets, and short-term debt are
1. The Zippy's Wine Purveyor has forecast a sales growth rate of 20 percent for next year. Current assets, fixed assets, and short-term debt are proportional to sales. The current financial statements are shown here: Balance Sheet Assets Liabilities and Equity Current Assets 7,240,000 Current iabilities 7,700,000 3,696,000 4,374,000 Retained Earings 10,410,000 Long-term Debt Fixed Assets 18940,000 Fixed Assets18,940,000 Common Stock Accumulated Total Assets 26,180,000 26,180,000 Income Statement Sales Costs 30,800,000 26,503,400 EBT Taxes 4,296,600 1,503,810 Net Income 2.292.790 Dividends Additions to Retained Earnings 1,117,116 1,675,674
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