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please help a. Stockholders' equity For stockholders' equity, we need to know how much will be added to stockholders' equity from net income. First, to
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a. Stockholders' equity For stockholders' equity, we need to know how much will be added to stockholders' equity from net income. First, to compute the forecasted sales, use the following formula: Forecasted Sales = Current Sales (1+ Sales Growth Rate ) Then, to compute the forecasted account value based on the percentage of sales method, use the following formula: Faranaetad Nat Inmonn - Current Net Income v Faronactad Caloe Forecasted Net Income =CurrentSalesCurrentNetIncome Forecasted Sales To find the additional amount to stockholders' equity, use the following formula: Additions to Stockholders' Equity = Net Income Retention Ratio To determine the new stockholders' equity, use the following formula: New Stockholders' Equity = Current Stockholders' Equity + Addition to Stockholders' Equity The additions to stockholders' equity will be $ (Round to the nearest dollar.) Jim's Espresso expects sales to grow by 10.3% next year. Assume that Jim's pays out 86.6% of its net income. Use the following statements and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable a. Stockholders' equity The new stockholders' equity will bes (Round to the nearest dollar.) Data table Step by Step Solution
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