Current Attempt in Progress

Jason Allen, president of Allen Corporation, believes that it is a good practice for a company to maintain a constant

payout of dividends relative to its earnings. Last year, net income was $$720,000,$ and the corporation paid

$$144,000$ in dividends. This year, due to some unusual circumstances, the corporation had income of $$1,570,000.$

Jason expects next year's net income to be about $$820,000.$

What was Allen Corporation's payout ratio last year? If it is to maintain the same payout ratio, what amount of

dividends would it pay this year?

Payout ratio$-$last year