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Big Test Inc. had sales last year of $100mm. Sales are expected to grow 20%...

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Accounting

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Big Test Inc. had sales last year of $100mm. Sales are expected to grow 20% next year. To support the new sales level, the production manager has indicated that fixed assets will need to increase by $30mm. Last year's balance sheet showed the following: o Current assets = - $20mm o Fixed assets = $90mm o Accounts Payable = $ 10mm Notes Payable = $20mm o Long-term Liabilities = $30mm o Common Stock = $20mm o Retained Earnings = $30mm Given this data, what is the forcast level of long-term liabilities for next year? (Note: use the standard assumptions from lecture) $30mm $24mm $36mm $20mm

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