Question
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales increase by 17% in 2014 and all other items, including debt,
| Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales increase by 17% in 2014 and all other items, including debt, increase correspondingly. |
| Income Statement | ||
| Sales | $ | 5,400 |
| Costs, including interest | 4,200 | |
| Net income | $ | 1,200 |
| Balance Sheet, Year-end | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| Assets | $ | 4,600 | $ | 4,100 | Debt | $ | 1,900 | $ | 1,733 | ||||
| Equity | 2,700 | 2,367 | |||||||||||
| Total | $ | 4,600 | $ | 4,100 | Total | $ | 4,600 | $ | 4,100 | ||||
a. What is the value of the retained earnings?
b. What is the residual dividend?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Airline Management Finance
Authors: Victor Hughes
1st Edition
1138610690, 978-1138610699
