The assets and current liabilities of Firm A vary in direct proportion to sales. The current sales are $2000 and we can expect them to increase by 20% next year. Net Income is projected to at 5% of sales. The firm is not planning on issuing any more common stock nor paying dividends. Current % of sales Projected Cash Accounts receivable Inventory Fixed assets Total assets $ 120 $ 500 $ 840 $ 2,600 $ 4,060 % % % % % Accounts payable $ 600 Long-term debt $ 700 Common stock and surplus $ 1,000 Retained earnings $ 1,760 Total liabilities and equity $ 4,060 % % % % %