Question
ick here to submit your course evaluation. FTC Inc. is forecasting its additional funding needs for its 2021 year. In 2020 Sales was $200,000,
ick here to submit your course evaluation. FTC Inc. is forecasting its additional funding needs for its 2021 year. In 2020 Sales was $200,000, EBIT of $ $24,000, Net Income of $10,000, and Dividend Paid of $6,000. The 2020 Balance Sheet was: Cash $1,000 Accounts payable $37,000 ST Investments 2,000 Accruals 3,000 Accts receivable 19,000 Notes Payable 25,000 Inventory 60,000 Common Stock 3,000 Net Fixed Assets 120,000 Retained Earnings 134,000 Total Assets $202,000 Total Liabilities & Equity $202.000 Assume that FTC is at full capacity and that Sales for 2021 is forecasted to grow by 5%. The 2021 Dividend payout ratio will be the same as the 2020 dividend payout ratio. What is FTC's Profit Margin? Select one: a. 14% b. 5% c. 12% d. 10%
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