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Consider Brightons results for Year 0 (see excel click here ). The sales forecast for Year 1 is given in excel. In addition, Brighton plans

Consider Brightons results for Year 0 (see excel click hereimage text in transcribed). The sales forecast for Year 1 is given in excel. In addition, Brighton plans on paying dividends of $20,000 in Year 1, they have 40,000 shares of common stock outstanding and for simplification, assume their tax expense is 35% of EBT. For Year 1, forecast Brightons:

  1. Basic Earnings per common share (rounded to the nearest cent).
  2. Retained earnings (rounded to the nearest dollar).
Brighton Company
Year 0 Year 1
Cash 50,000.00
Accounts Receivable 275,000.00
Inventory 350,000.00
Net PP&E 800,000.00
Total Assets 1,475,000.00
Accounts Payable 80,000.00
Notes Payable 190,000.00
Common Stock 40,000.00
Treasury Stock (10,000.00)
Additional Paid-in Capital 100,000.00
Retained Earnings 1,100,000.00
Accumulated OCI (25,000.00)
Total Liab and Equity 1,475,000.00
Sales 1,000,000.00 1,200,000.00
Variable Expenses (600,000.00)
Contribution Margin 400,000.00
Fixed Expenses (150,000.00)
Operating Income 250,000.00
Nonrecurring Gain 75,000.00
Tax Expense (113,750.00)
Net Income 211,250.00

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