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Mosley Corporation's sales are expected to increase from $8 million in 2012 to $10 million in 2012 or by 25%. Its assets totaled $6 million
Mosley Corporation's sales are expected to increase from $8 million in 2012 to $10 million in 2012 or by 25%. Its assets totaled $6 million at the end of 2012. Mosley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2012, current liabilities are $2 million, consisting of $1 million in account payable, $500,000 of notes payable, and $500,000 of accrued liabilities. Its profit margin is forecasted to be 4.5% and the forecasted retention ratio is 28%. What are the additional funds needed by Mosley? 0 $1,249.000 $865,000 O $999,000 O $903.000
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