Next, solve for the addition to retained earnings for FY$24$ YoY growth rate of $17$ percent

Plant currently operating at capacity

Growth will require a new machine costing $$3$ million

Assume additional $$300,000$ of annual depreciation for this new machine $(10\%/$year$)$ FY$23$

FY$24$

That was the third incorrect attempt.

Addition to retained earnings is $$782,289.$

Net Income $-$ Dividends

$=$$$1,282,289-$$$500,000$

$=$$$782,289$

Correct Answer:

$782,289$

Great, you've finalized what their FY$24$ income statement is projected to look like!

Next, let's move to the balance sheet.

What is FY$24$ accounts receivable expected to be$?$

Materials on the right have been updated $$