Question

Berman & Jaccor Corporation's current sales and partial balance sheet are shown below.

	This year
Sales		$	1,000
Balance Sheet: Assets
Cash		$	200
Short-term investments		$	140
Accounts receivable		$	100
Inventories		$	150
Total current assets		$	590
Net fixed assets		$	400
Total assets		$	990

Sales are expected to grow by 12% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.

Answer 1

Projected total operating assets

=(100%+Increase in sales)*(Operating assets)

= 112%*(Operating assets)

= 112%*(200+100+150+400)

= $952