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Suppose that Wall - E Corporation currently has the balance sheet shown below, and that sales for the year just ended were $ 7 .

Suppose that Wall-E Corporation currently has the balance sheet shown below, and that sales for the year just ended were $7.9 million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent and expects sales of $9.9 million next year. Fixed assets are currently fully utilized, and the nature of Wall-E's fixed assets is such that they must be added in $1 million increments.
\table[[Assets,Liabilities and Equity],[\table[[Current assets],[Fixed assets]],\table[[$2,844,000
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