Schwartz Company represent a summary of your first-iteration forecast amounts for Year +1. Schwartz uses dividends as a flexible financial account. Compute the amount of dividends you can assume that Schwartz will pay in order to balance you projected balance sheet. Present the projected balance sheet.

Year +1

Operating income-----------------------------------------$58

Interest expense ---------------------------------------------(8)

______

Income before tax ------------------------------------------$50

Tax provision (20.0% effective tax rate)--------------(10)

Net income------------------------------------------------------$40

===========

Total assets------------------------------------------------------$200

Accrued liabilities---------------------------------------------------43

Long-term debt------------------------------------------------------80

Common stock, at par---------------------------------------------20

Retained earnings (at the beginning of Year +1)----------34

Can you please help me understand how to calculate for the dividends for the question above.