Question
Oscar's Incredible Eatery ($ thousands) Income Statement for the year ending Dec. 31, 2017 Net sales 17,300 Cost of goods sold 10,600 Depreciation 3,250
Oscar's Incredible Eatery ($ thousands) Income Statement for the year ending Dec. 31, 2017 Net sales 17,300 Cost of goods sold 10,600 Depreciation 3,250 Earnings before interest and taxes 3,450 Interest expense 680 Earnings before tax 2,770 Tax 940 Earnings after tax 1,830 Dividends 450 Oscar's Incredible Eatery ($ thousands) Balance Sheet as of Dec. 31, 2017 Cash 350 Accounts payable 1,920 Accounts receivable 940 Long-term debt 3,500 Inventory 2,360 Common stock 7,500 Total current assets 3,650 Retained earnings 1,580 Net fixed assets Total assets 10,850 14,500 Total liab. & equity 14,500 Please refer to Oscar's financial statements above. Sales are projected to increase by 3 percent next year. The profit margin and the dividend payout ratio are projected to remain constant. What is the projected addition to retained earnings for next year?
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