Question
HEIR JORDAN CORPORATION Income Statement Sales 46,500 Costs36,100 Taxable income$10,400 Taxes (23%)2,392 Net income$8,008 Dividends$3,100 Addition to retained earnings4,908 The projected sales growth rate is
HEIR JORDAN CORPORATION
Income Statement
Sales 46,500
Costs36,100
Taxable income$10,400
Taxes (23%)2,392
Net income$8,008
Dividends$3,100
Addition to retained earnings4,908
The projected sales growth rate is 16 percent.
Prepare 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?
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
9780538751292, 324787359, 538751290, 978-0324787351
