17. The percent of sales method is based on which of the following assumptions A. All balance sheet accounts are tied directly to sales. B. Most balance sheet accounts are tied directly to sales. The current level of total assets is optimal for the current sales love D. Statements b and c above are correct. 18. CDC Co., Inc. had the following balance sheet last year Cash $ 800 Accounts receivable Accounts payable $ 350 450 Inventories Accrued wages 150 950 Net fixed assets Notes payable 2.000 34,000 Mortgage 26,500 Common stock 3,200 Retained earnings 4,000 Total liabilities Total assets $ 36,200 and equity $36.200 CDC Co., Inc. has just invented a non-slip wig for men that she expects will cause sales to double from $10,000 to $20,000, increasing netwo greasing net income to $1,000. The company feels that they can handle the increased can handle the increase without adding any fixed assets. (1) Will Jill need any outside capital if she pays no dividends? (2) If so, how much? A. No, zero B. Yes; $7,700 C. Yes: $1.700 D. Yes; $700 19. Juan & Associates recently reported sales of $100 million, and net income equal to $5 million. The company has $70 million in total assets. Over the next year, the company is forecasting a 20 percent increase in sales. Since the company is at full capacity, its assets must increase in proportion to sales. The company also estimates that if sales increase 20 percent, spontaneous liabilities will increase by $2 million. If the company's sales increase, its profit margin will remain at its current level: The company'a dividend payout ratio is 40 percent: Based on the DFN formula, how much additional capital must the company raise in order to support the 20 percent increase in sales? A. $ 2,000,000 B. $ 6,000,000 C. $ 8,400,000 D. $ 9,600,000