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Income statement for 2016 (in $) 2016 Sales 460,000 Operating costs 230,000 Depreciation 92,000 EBIT 138,000 Interest 25,000 Taxes (28%) 31,640 Net income 81,360
Income statement for 2016 (in $) 2016 Sales 460,000 Operating costs 230,000 Depreciation 92,000 EBIT 138,000 Interest 25,000 Taxes (28%) 31,640 Net income 81,360 48,816 Dividends Sales and depreciation are expected to increase by 30% in 2017, while costs (excluding depreciation) are expected to reach 45% of sales. Interest expenses, the average tax rate and the dividend payout ratio are expected to stay constant. Part 1 BAttempt 4/10 for 8 pts. Prepare a pro forma income statement for 2017. What is the expected net income? 0+ decimals Submit Part 2 What are the expected dividends for 2017? 0+ decimals BAttempt 1/10 for 10 pts.
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