Question
Use the below information to answer the following question. Income Statement For the Year Sales $42,700 Cost of goods sold 29,250 Depreciation 3,750 Earnings before
Use the below information to answer the following question. Income Statement For the Year Sales $42,700 Cost of goods sold 29,250 Depreciation 3,750 Earnings before interest and taxes $ 9,700 Interest paid 1,360 Taxable income $ 8,340 Taxes 2,840 Net income $ 5,500 Dividends $1,925 Balance Sheet End-of-Year Cash $1,320 Accounts receivable 3,780 Inventory 10,200 Total current assets $15,300 Net fixed assets 33,600 Total assets $48,900 Accounts payable $ 3,650 Long-term debt 18,100 Common stock ($1 par value) 15,000 Retained earnings 12,150 Total Liab. & Equity $48,900 What are the pro forma retained earnings for next year if this firm grows at a rate of 3.6 percent and both the profit margin and the dividend payout ratio remain constant? $3,704 $3,771 $3,592 $15,921 $15,854
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