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The following Income Statement and Balance Sheet should be used: Creative Analysis, Inc. 2015 Income Statement Net sales $8,500 7,210 400 Cost of goods sold
The following Income Statement and Balance Sheet should be used: Creative Analysis, Inc. 2015 Income Statement Net sales $8,500 7,210 400 Cost of goods sold Depreciation Earnings before interest and taxes 890 40 Interest paid Texable income $850 Taxes 310 Net Income $540 $324 Dividends Addition to retained earnings $216 Cash Creative Analysis, Inc. 2015 Balance Sheet $1,600 Accounts Payable 975 Long-term debt 2,425 Common stock $2,075 Accounts Rec 425 Inventory 3,000 Total 1,700 $5,000Retained earrings 2,200 Net fixed assets Total assets $7,200 Total Liabilities & equity $7,200 Assume the profit margin and the dividend payout ratio of Creative Analysis, Inc. are constant. If sales increase by 8 percent, what is the pro forma retained earnings? Select one a $1,933 28 b. $237 60 C. $1,870.00 d. $356.40
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