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Suppose that Wind Em Corporation currently has the balance sheet shown as follows, and that sales for the year just ended were $1 million. The
Suppose that Wind Em Corporation currently has the balance sheet shown as follows, and that sales for the year just ended were $1 million. The firm also has a profit margin of 10 percent, a retention ratio of 20 percent, and expects sales of $2 million next year. If all assets and current liabilities are expected to grow with sales, how much will spontaneous liabilities increase with the increase in sales? Multiple Choice 5100,000
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