Question
CCC currently has sales of $20,000,000 and projects sales of $28,000,000 for next year. The firm's current assets equal $6,000,000 while its fixed assets are
CCC currently has sales of $20,000,000 and projects sales of $28,000,000 for next year. The firm's current assets equal $6,000,000 while its fixed assets are $7,000,000. The best estimate is that current assets will rise directly with sales while fixed assets will rise by $400,000. The firm presently has $3,000,000 in accounts payable, $1,200,000 in long-term debt, and $8,800,000 in common equity. All current liabilities are expected to change directly with sales. CCC plans to pay $700,000 in dividends next year and has a 5.0% net profit margin. Assuming the increase in fixed assets will occur, what is the most sales could equal next year without using discretionary sources of funds?
Group of answer choices
$16,775,100
$21,109,000
$23,398,500
$19,000,000
$17,901,420
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