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Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.6 million. The firm
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.6 million. The firm also has a profit margin of 25 percent, a retention ratio of 30 percent, and expects sales of $8.6 million next year.
Assets | Liabilities and Equity | |||||||
Current assets | $ | 2,396,000 | Current liabilities | $ | 2,168,760 | |||
Fixed assets | 4,600,000 | Long-term debt | 1,800,000 | |||||
Equity | 3,027,240 | |||||||
Total assets | $ | 6,996,000 | Total liabilities and equity | $ | 6,996,000 | |||
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