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there a 20 percent probability the eoony strong, a 50 percent probability of a steady economy, and a 30 percent probabil- ity of a weak economy. What is the expected level of sales for next year? 2. Sharpe Knife Company expects sales next year to be $1,550,000 if the economy is strong, $825, 000 if the economy is steady, and $550,000 if the economy is harpe believes there is a 30 percent probability the economy will be strong, a 40 percent probability of a steady economy, and a 30 percent probabil- ity of a Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will increase $90,000 to accommodate t company has a steady profit margin of 12 percent with a 40 percent dividend payout. How much external financing will Tobin Supplies Company have seek? Assume there is n with the external financing. weak economy. What is the expected level of sales for the next year? 3. his sales level . The to o increase ie hzbilities ther ttran that which will occur 4. Antivirus Inc. expects its sales nexs yeez to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommodate this sales level. The company has a steady profit margin of 15 percent with a 35 percent dividend payout. How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing. Antonio Banderos & Scarves makes headwear that is very popular in the fall- winter season. Units sold are anticipated as follows: 5