Philip Morris expects the sales for his clothing company to be $550,000 next year. Philip notes that

Question:

Philip Morris expects the sales for his clothing company to be $550,000 next year. Philip notes that net assets (Assets – Liabilities) will remain unchanged. His clothing firm will enjoy a 12 percent return on total sales. He will start the year with $150,000 in the bank. What would Philip's ending cash balance be?