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?

Assets Liabilities and Equity

Current assets $ $500,000$ Current liabilities $ $200,000$

Fixed assets $250,000$ Long$-$term debt $300,000$

Equity $250,000$

Total assets $ $750,000$ Total liabilities and equity $ $750,000$