Question
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 48,200 Costs 34,000 Taxable income $ 14,200 Taxes
Consider the following income statement for the Heir Jordan Corporation:
| HEIR JORDAN CORPORATION Income Statement | ||||||
| Sales | $ | 48,200 | ||||
| Costs | 34,000 | |||||
| Taxable income | $ | 14,200 | ||||
| Taxes (35%) | 4,970 | |||||
| Net income | $ | 9,230 | ||||
| Dividends | $ | 2,600 | ||||
| Addition to retained earnings | 6,630 | |||||
| The projected sales growth rate is 10 percent. |
| Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. |
| HEIR JORDAN CORPORATION Pro Forma Income Statement | |
| Sales | $ |
| Costs | |
| Taxable income | $ |
| Taxes | |
| Net income | $ |
| What is the projected addition to retained earnings? |
| Retained earnings | $ |
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Finance And Democracy Towards A Sustainable Financial System
Authors: Alessandro Vercelli
1st Edition
3030279111, 978-3030279110
