1.Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,410, current assets of $750, current liabilities of $440, net fixed assets of $1,600, 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 10 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?

2.The Cookie Shoppe expects sales of $2,700 next year. The profit margin is 5 percent and the firm has a 49 percent dividend payout ratio. What is the projected increase in retained earnings?