ABC is anticipating growth in sales of 40% for year. Sales are currently at $800,000. Total assets are $600,000 (comprised of cash of $70,000, inventory of $230,000, accounts receivable of $100,000, buildings of $150,000, and equipment of $50,000.) Spontaneous liabilities are $120,000. Italia is currently operating at 60% capacity. By what amount are total assets expected to increase next year?
$80,000 $160,000 $180,000 $260,000 $320,000