Holcomb and Cromworthy are forecasting a 10% increase in sales next year. Assume the company is operating at 90% capacity. The company has 100,000 shares of common stock outstanding and dividends are $0.22 per share.

At 90% capacity what level will sales have to reach for the discretionary items to become spontaneous that is move in direct proportion to sales? [ Select ] ["$4,277,777", "$4,235,000", "$3,975,000"]

Compute the new level of net income for the company [ Select ] ["$85,880", "$80,220", "$56,935"] .

Compute the company's additional retained earnings for the year [ Select ] ["$55,360", "$61,420", "$58,220"]

Compute the new level of total assets required [ Select ] ["$1,779,800", "$1,815,880", "$1,272,680"]

Calculate the new level of current liabilities [ Select ] ["$502,358", "$568,357", "$571,720"]

Compute the company's new level of retained earnings on the balance sheet [ Select ] ["$224,600", "$277,666", "$284,208"]

Calculate the level of Additional Funds Needed (AFN) to support the increase in sales. [ Select ] ["$39,260", "$37,354", "$42,460"]

ASSETS 2015 $52,000 402,000 836,000 $1,290,000 527,000 - 166,200 $360,800 $1,650,800 2014 $57,600 351,200 715,200 $1,124,000 491,000 -146,200 $344,800 $1,468,800 CASH ACCOUNTS RECEIVABLE INVENTORIES TOTAL CURRENT ASSETS GROSS FIXED ASSETS LESS: ACCUMULATED DEPRECIATION NET FIXED ASSETS TOTAL ASSETS LIABILITIES AND EQUITY ACCOUNTS PAYABLE NOTES PAYABLE ACCRUALS TOTAL CURRENT LIABILITIES LONG-TERM DEBT COMMON STOCK RETAINED EARNINGS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY INCOME STATEMENTS $175,200 225,000 140,000 $540,200 424,612 460,000 225,988 $685,988 $1,650,800 $145,600 200,000 136,000 $481,600 323,432 460,000 203,768 $663,768 $1,468,800 SALES COST OF GOODS SOLD GROSS PROFIT OTHER EXPENSES DEPRECIATION 2015 $3,850,000 -3,250,000 600,000 -430,300 -20,000 $149,700 -76,000 $73,700 -29,480 $44,220 $0.44 2014 $3,432,000 -2,864,000 568,000 -340,000 -18,900 $209,100 -62,500 $146,600 -58,640 $87,960 $0.88 EBIT INTEREST EXPENSE EBT TAXES (40%) NET INCOME EPS ASSETS 2015 $52,000 402,000 836,000 $1,290,000 527,000 - 166,200 $360,800 $1,650,800 2014 $57,600 351,200 715,200 $1,124,000 491,000 -146,200 $344,800 $1,468,800 CASH ACCOUNTS RECEIVABLE INVENTORIES TOTAL CURRENT ASSETS GROSS FIXED ASSETS LESS: ACCUMULATED DEPRECIATION NET FIXED ASSETS TOTAL ASSETS LIABILITIES AND EQUITY ACCOUNTS PAYABLE NOTES PAYABLE ACCRUALS TOTAL CURRENT LIABILITIES LONG-TERM DEBT COMMON STOCK RETAINED EARNINGS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY INCOME STATEMENTS $175,200 225,000 140,000 $540,200 424,612 460,000 225,988 $685,988 $1,650,800 $145,600 200,000 136,000 $481,600 323,432 460,000 203,768 $663,768 $1,468,800 SALES COST OF GOODS SOLD GROSS PROFIT OTHER EXPENSES DEPRECIATION 2015 $3,850,000 -3,250,000 600,000 -430,300 -20,000 $149,700 -76,000 $73,700 -29,480 $44,220 $0.44 2014 $3,432,000 -2,864,000 568,000 -340,000 -18,900 $209,100 -62,500 $146,600 -58,640 $87,960 $0.88 EBIT INTEREST EXPENSE EBT TAXES (40%) NET INCOME EPS