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ABC Corporation Current Financial Statements (in millions of $) Income Statement Sales 1800 Costs 1500 Taxable income 300 Taxes (34%) ?? Net income ?? Dividend
ABC Corporation
Current Financial Statements (in millions of $)
Income Statement
Sales 1800
Costs 1500
Taxable income 300
Taxes (34%) ??
Net income ??
Dividend (30% of net income)
Earnings retained ??
Balance Sheet
Cash 210
A/R 730
Inventory 1100
PPE 2060
Total Assists ??
A/P 410
N/P 130
LTD 420
C/S 2000
R/E 1140
Total L/E ??
Sales are expected to increase by 12%.
Assumptions concerning the income statement:
Costs are a constant fraction of sales.
The tax rate is not expected to change.
Dividend payout ratio will remain constant.
- In the income statement calculate the net income, dividends and retained earnings.
- You are required to prepare Pro Forma Financial Statements.
- Attach Excel sheet with the problem solution
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