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im not sure how you get these answers 17-4. PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2021 income statement (in millions of
im not sure how you get these answers
17-4. PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2021 income statement (in millions of dollars): Sales Operating costs including depredation EBIT $700 500 $200 Interest EBT 40 5160 Taxes (25%) 40 Net Income $120 $ 40 Dividends Addition to retained earnings $ 80 For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin's projected 2022 net income? Answer $166.875 million x b. What is the expected growth rate in Austin's dividends? Answer + 39.06% Step by Step Solution
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