Balance sheet for year ended on December 31

assets:

Cash and equivalence: $150,000

accounts receivable $400,000

Inventories $350,000

total current assets $900,000

net fixed assets

net plant and equipment minus depreciation $2,100,000

Liabilities

Accounts payable $250,000

Accrued liabilities $150,000

Notes payable $100,000

Total current liabilities $500,000

long-term bonds $1 million

Total debt $1,500,000

common equity

common stock $800,000

retwined earnings $700,000

The firm is currently in the process of forecasting sales, assets requirements, and required funding for the coming year. In the year that just ended, green caterpillar garden supplies Inc. generated $300,000 net income on sales of $14 million the firm expect sales to increase by 18% this coming year and also expects to maintain its long run dividend payout ratio of 40% suppose the companies assets are fully utilized use the additional funds needed equation to determine the increase in total assets that is necessary to support the green companies expected sales. A $486,000 be $459,000 see $567,000 D $540,000 how much of the total increase in assets will be supplied by spontaneous liabilities this year a $72,000 be $75,600 see $61,200 D $64,800