home / study / business / accounting / accounting questions and answers / Wagner Industrial Motors, Which Is Currently Operating At Full Capacity, Has Sales Of $2,290, ... Question: Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,290, cur... Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,290, current assets of $630, current liabilities of $320, net fixed assts of $1,480, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 10 percent next year. If all assets, short-term liabilities, and cost vary directly with sales, how much additional equity financing is required for next year? Compute one by one and answer the following questions:

1. Projected increase in retained earning (equity) is?