Ich is currently operating at full capacity

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Reference no: EM131313325

Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,290, current assets of $630, current liabilities of $320, net fixed assets of $1,480, 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. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year? Compute one by one and answer the following questions (show your computations!):

Current total equity = $______

Projected assets = $______

Projected liabilities = $______

Projected increase in retained earnings (equity) = $______

Equity funding need = $______

Reference no: EM131313325

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