Question: 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 assts 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 cost vary directly with sales, how much additional equity financing is required for next year? Compute one by one and answer the following questions:
A. Current total equity
B. Projected assets
C. Projected liabilities
D. Projected increase in retained earning (equity)
E. Equity funding need