Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the forecast for retained earnin Using the information in the 2020 income statement below, what is the forecast for retained earnings in 2021

what is the forecast for retained earnin
image text in transcribed
Using the information in the 2020 income statement below, what is the forecast for retained earnings in 2021 if sales are forecast to increase by 10%. Assume the net profit margin is unchanged and dividends continue to be paid out at a rate of 50%. Please give your answer to 2 decimals. For example 24.58. 2020 Income Statement: Sales 500 Gross operating profit 180 Fixed costs 80 EBIT 100 Interest 26 Taxes (50%) 24 Net Income 50 Dividends 25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C. Knapp

8th edition

978-0538466790, 538466790, 978-1285066608

More Books

Students also viewed these Accounting questions

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago