a. World Company most recent sales were

$555,000,000

; operating costs (excluding depreciation) were equal to

85%

of sales;\ net fixed assets were

$67,000,000

; depreciation amounted to

10%

of net fixed assets; interest expenses were

$8,550,000

; the\ state-plus-federal corporate tax rate was

40%

and World Company paid

25%

of its net income out in dividends. Given this\ information, construct World Company's income statement. Also calculate total dividends and the addition to retained\ earnings.\ The input information required for the problem is outlined in the "Key Input Data" section below. Using this data and the balance sheet\ above, we constructed the income statement shown below.\ Key Input Data for World Company\ (Thousands of dollars)\ Sales Revenue\ Expenses (excluding depreciation) as a percent of sales\ Net fixed assest\ Depr. as a % of net fixed assets\ Tax rate\ Interest expense\ Dividend Payout Ratio\ World Company: Income Statement (Thousands of dollars)\ Sales\ Operating costs excluding depreciation\ EBITDA\ Depreciation (Cumberland has no amortization charges)\ EBIT\ Interest expense\ EBT\ Taxes (40%)\ Net income\ Common dividends\ Addition to retained earnings\ b. World Company' partial balance sheets are shown below. World Company issued

$10,000,000

of new common stock in\ the most recent year. Using this information and the results from part a, fill in the missing values for common stock,\ retained earnings, total common equity, and total liabilities and equity.

World Company most recent sales were $555,000,000; operating costs (excluding depreciation) were equal to 85% of sales; het fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets; interest expenses were $8,550,000; the state-plus-federal corporate tax rate was 40% and World Company paid 25% of its net income out in dividends. Given this nformation, construct World Company's income statement. Also calculate total dividends and the addition to retained World Company most recent sales were $555,000,000; operating costs (excluding depreciation) were equal to 85% of sales; het fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets; interest expenses were $8,550,000; the state-plus-federal corporate tax rate was 40% and World Company paid 25% of its net income out in dividends. Given this nformation, construct World Company's income statement. Also calculate total dividends and the addition to retained