Chapter 06: Working Capital and the Financing Declalom Chapter 6 Problems 1. Expected value (L06) Gary's Pipe and Steel Company expect sales next year to be $800,000 if the economy is strong, $500,000 if the economy in steady, and $350,000 economy is weak. Gary believes there is a 20 percent probability the economy will be strong, a 50 percent probability of a steady economy, and a 30 perces probability of a weak economy. What is the expected level of sales for next year? 6-1. Solution: Gary's Pipe and Steel Company Expected