Table 4.1
Bacon Signs
2013 Income Statement (000's)
	2013
Net Sales	$7,418
COGS	$5,271
Depreciation	$745
EBIT	$1,402
Interest	$305
EBT	$1,097
Taxes (35%)	$384
Net Income	$713
Dividends Paid	$250
Addition to Retained Earnings	$463
Bacon Signs
2012 and 2013 Balance Sheets (000's)
Assets	2012	2013
Cash	$972	$500
A/R	$1,680	$2,670
Inventory	$875	$738
Total Current Assets	$3,527	$3,908
Net Fixed Assets	$12,680	$14,155
Total Assets	$16,207	$18,063
Liabilities	2012	2013
A/P	725	1765
N/P	1525	1178
Total Current Liabilities	2250	2943
LongminusTerm Debt	5000	5500
Common Stock	4000	4200
Retained Earnings	4957	5420
Total Liabilities and Equity	16207	18063

Use the information in Table 4.1 to determine the 2013 dividend payout ratio for Bacon Signs.

A. $250/$7418 = 0.03

B. This question cannot be answered from the information provided.

C. $250/$713 = 0.35

D. $463/$713 = 0.65