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Barbaras Bakery Ltd. has the following balance sheet as of December 31, 2019. Current assets $800 Accounts payable $350 Accounts Receivable 450 Accrued wages 150

Barbaras Bakery Ltd. has the following balance sheet as of December 31, 2019.

Current assets

$800

Accounts payable

$350

Accounts Receivable

450

Accrued wages

150

Inventories

1,950

Notes payable

2,000

Mortgage

26,500

Net Fixed assets

53,000

Common stock

13,200

Retained Earnings

14,000

Total assets

$56,200

Total liabilities and equity

$56,200

In 2019, sales were $92,000, net income was $5,000, and dividends were $0. Sales will increase by 50% in 2020. Assume the companys current assets and spontaneous liabilities are at full capacity, so both will increase proportionately with an increase in sales. The companys fixed assets are at 65% of capacity. How much are total assets expected to increase in 2020?

a) $5,700

b) $960

c) $9,136

d) $1,600

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