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RST Ltd. has the following profit and loss account for the year ended 31st December 2023: Particulars Amount () Sales 20,00,000 Cost of Goods Sold
RST Ltd. has the following profit and loss account for the year ended 31st December 2023:
Particulars | Amount (₹) |
Sales | 20,00,000 |
Cost of Goods Sold | 12,00,000 |
Gross Profit | 8,00,000 |
Operating Expenses | 4,00,000 |
Operating Profit | 4,00,000 |
Interest Expenses | 50,000 |
Net Profit before Tax | 3,50,000 |
Tax | 1,00,000 |
Net Profit | 2,50,000 |
- PREPARE the statement of retained earnings.
- CALCULATE the dividend payout ratio if ₹1,00,000 is paid as dividends.
- ANALYZE the impact on retained earnings if net profit increases by 15%.
- EVALUATE the effect of reducing operating expenses by 10% on net profit.
- DISCUSS the strategic importance of retained earnings for business growth.
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