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Problem:

Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,450, current assets of $790, current liabilities of $480, net fixed assets of $1,640, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 10 percent next year.

Required:

Question: If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?

$12.25
$245.00
$257.25
$182.75
$60.25

Note: Please show guided help with steps and answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171640

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