A)

Smiley Corporation's current sales and partial balance sheet are shown below.

	This year
Sales		$	10,000
Balance Sheet: Liabilities
Accounts payable		$	2,000
Notes payable		$	1,500
Accruals		$	1,000
Total current liabilities		$	4,500
Long-term bonds		$	2,000
Total liabilities		$	6,500
Common stock		$	2,000
Retained earnings		$	2,500
Total common equity		$	4,500
Total liabilities & equity		$	11,000

Sales are expected to grow by 10% next year. Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations. Round your answer to the nearest dollar.

$

B)

Maggie's Muffins Bakery generated $4 million in sales during 2019, and its year-end total assets were $2 million. Also, at year-end 2019, current liabilities were $1 million, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2020, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 7%, and its payout ratio will be 65%. How large a sales increase can the company achieve without having to raise funds externallythat is, what is its self-supporting growth rate? Do not round intermediate calculations. Enter your answer for sales increase in dollars. For example, an answer of $2 million should be entered as 2,000,000.Round the monetary value to the nearest dollar and percentage value to one decimal place.

Sales can increase by $ , that is by %.