The profit and loss account of Indian Industries Limited for years 1 and 2 is given below.

Using the percent of sales method, prepare the pro forma profit and loss account for year 3

Assume that the sales will be Rs. 500 cr in year 3. If dividends are raised to Rs. 80 cr.

what amount of retained earnings can be expected for year 3

Q.A The profit and loss account of Indian Industries Limited for years 1 and 2 is given below. Using the percent of sales method, prepare the pro forma profit and loss account for year 3 Assume that the sales will be Rs. 500 cr in year 3. If dividends are raised to Rs. 80 cr. what amount of retained earnings can be expected for year 3 Particulars Net Sales Cost of Goods Sold Gross Profit Selling Expenses General and Administrtaion Depreciation Operating Profit Non Operating surplus deficit Earnings before interest and tax Interest Earnings before Tax Tax Earnings after Tax Dividends Retained Earnings Year 1 2300 1760 540 150 120 94 176 12 188 30 158 56 102 35 67 All amounts in Rs. Cr Year 2 Year 3 2700 2000 700 180 124 84 312 10 322 38 284 96 188 35 153 5000