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9. increase in sales that can be sustained assuming no new equity is issued? Calculating Retained Earnings from Pro Forma Income (L01] Consider the following
9. increase in sales that can be sustained assuming no new equity is issued? Calculating Retained Earnings from Pro Forma Income (L01] Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) Net income Dividends $2,400 Addition to retained earnings 4,386 $49,000 40,300 $ 8,700 1.914 $ 6,786 A 20 percent growth rate in sales is projected. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. What is the projected addition to retained earnings
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
