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Suppose that Wind Em Corporation currently has the balance sheet shown as follows, and that sales for the year ended were $1 million. The firm

Suppose that Wind Em Corporation currently has the balance sheet shown as follows, and that sales for the year 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 liabilites are expected to grow with sales, how much will spontaneous liabilites increase with the increase in sales?
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\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Assets } & \multicolumn{3}{|c|}{ Liabilities and Equity } \\ \hline Current assets & $500,000 & Current liabilities & $ & 200,000 \\ \hline Fixed assets & 250,000 & Long-term debt & & 300,000 \\ \hline & & Equity & & 250,000 \\ \hline Total assets & $750,000 & \begin{tabular}{l} Total liabilities and \\ equity \end{tabular} & $ & 750,000 \\ \hline \end{tabular}

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