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Earths Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $20,000, and the following balance sheet. Assume that
Earths Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $20,000, and the following balance sheet. Assume that next year the firm again has net income of $20,000 pays a $8,000 dividend to shareholders, does not repurchase any stock, does not issue any stock, and makes a capital investment of $10,000 to buy some additional equipment. Next year, Common Equity will be.
Cash Receivables Inventories Net fixed assets90,000Common equity Total assets $40,000 20,000 30,000 220,000 $310,000 $ 20,000 Accounts payable 50,000 Other current liabilities 150,000 Long-term detbt $310,000 Total liabilities and equityStep by Step Solution
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