Question
The Income Statement of XYZ Company for the most recent fiscal year is given below. Its sales are projected to increase by 20% in the
The Income Statement of XYZ Company for the most recent fiscal year is given below. Its sales are projected to increase by 20% in the coming year and it always retains 60% of its net income. Use the percentage of sales method to find out the addition to retained earnings amount.
Sales $40,000
Operating costs 30,000
Earnings before interests and taxes $10,000
Interest expenses 1,000
Earnings before taxes $ 9,000
Taxes (40%) 3,600
Net income $ 5,400
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
