Question
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 45,000 Costs 35,000 Taxable income $ 10,000 Taxes
| Consider the following income statement for the Heir Jordan Corporation: |
| HEIR JORDAN CORPORATION Income Statement | ||||||
| Sales | $ | 45,000 | ||||
| Costs | 35,000 | |||||
| Taxable income | $ | 10,000 | ||||
| Taxes (22%) | 2,200 | |||||
| Net income | $ | 7,800 | ||||
| Dividends | $ | 1,600 | ||||
| Addition to retained earnings | 6,200 | |||||
| The projected sales growth rate is 16 percent. |
| Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all answers as positive values. Do not round intermediate calculations.) |
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Financial And Insurance Formulas
Authors: Tomas Cipra
2010th Edition
3790829013, 978-3790829013
