In 2016 Mango Corporation had net income of $5 million on sales of $50 million. The 2016 balance sheet showed current liabilities of $12 million, long-term debt of $18 million and equity of $45 million. The sales forecast for 2017 is $54 million. If Mango pays no dividends, what is the forecasted increase or decrease in equity at the end of 2017?
A) $49.5 million
B) $ 4.5 million
C) $5.4 million
D) $(5.4) million

Question

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The Answer of In 2016 Mango Corporation had net income of $5 million on sales of $50 million. The 2016 balance sheet showed current liabilities of $12 million, long-term debt of $18 million and equity of $45 million. The sales forecast for 2017 is $54 million. If Mango pays no dividends, what is the forecasted increase or decrease in equity at the end of 2017?
A) $49.5 million
B) $ 4.5 million
C) $5.4 million
D) $(5.4) million

In 2016 Mango Corporation Had Net Income of $5 Million