Question
The following is the statement of comprehensive income for the Sauron Industries Corporation. Sales : $555,000,000 Costs: $365,000,000 Taxable Income $190,000,000 Taxes (@40%) $76,000,000 Net
The following is the statement of comprehensive income for the Sauron Industries Corporation.
Sales : $555,000,000
Costs: $365,000,000
Taxable Income $190,000,000
Taxes (@40%) $76,000,000
Net Income $114,000,000
Dividends $50,000,000
Addition to Retained Earnings $64,000,000
Recently the Sauron Corporations property was destroyed by fire. As a result, Sauron is expecting a 60% reduction is sales. The dividend payout ratio is fixed. What will be added to retained earnings?
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The Handbook Of Financial Instruments
Authors: Frank J. Fabozzi
1st Edition
0471220922, 978-0471220923
