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Assume the profit margin and dividend payout ratios are constant. What is the projected retained earnings on the Income Statement if sales increase by 7
Assume the profit margin and dividend payout ratios are constant. What is the projected retained earnings on the Income Statement if sales increase by 7 percent? Currently, the firms sales =$4,700, net income is $420, total assets=7890, dividends=125, A/P =790, LTD= 3130, and common stock=2780, and retained earnings =1190.
A. $315.65
B. $896.25
C. $1,505.65
D. $2,060.25
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