Question
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 46,200 Costs 34,200 Taxable income $ 12,000 Taxes
| Consider the following income statement for the Heir Jordan Corporation: |
| HEIR JORDAN CORPORATION Income Statement | ||||||
| Sales | $ | 46,200 | ||||
| Costs | 34,200 | |||||
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| Taxable income | $ | 12,000 | ||||
| Taxes (30%) | 3,600 | |||||
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| Net income | $ | 8,400 | ||||
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| Dividends | $ | 2,800 | ||||
| Addition to retained earnings | 5,600 | |||||
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| The projected sales growth rate is 18 percent. |
| Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all amounts as positive values. Do not round intermediate calculations.) |
| HEIR JORDAN CORPORATION Pro Forma Income Statement | |
| Sales | $ |
| Costs | |
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| |
| Taxable income | $ |
| Taxes | |
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| |
| Net income | $ |
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| What is the projected addition to retained earnings? (Do not round intermediate calculations.) |
| Addition to retained earnings | $ |
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Contemporary Issues In Behavioral Finance
Authors: Simon Grima
1st Edition
1787698823, 978-1787698826
