Your Answer For question 4: Q4: Given the financial information for the A.E. Neuman Corporation, A) Prepare a Statement of Cash Flows for the year ended December 31, 205. B) What is the dividend payout ratio? C) If we increased the dividend payout ratio to 100%, what would happen to retained earnings? \begin{tabular}{|c|c|c|} \hline Inventories & 230,000 & 275,000 \\ \hline Investments & 70,000 & 55,000 \\ \hline Total current assets & $760,000 & $760,000 \\ \hline Plant and Equipment & 1,300,000 & 1,550,000 \\ \hline Less Accumulated Amortization & 450,000 & 600,000 \\ \hline Net plant and Equipment & $850,000 & $950,000 \\ \hline Total Assets & 1,610,000 & 1,710,000 \\ \hline LIABIITIES AND $SHREHOLDERS & EQUTTY \\ \hline Accounts payable & $110,000 & $85,000 \\ \hline Notes payable & 65,000 & 10,000 \\ \hline Accrued Expenses & 30,000 & 5,000 \\ \hline Income Taxes Payable & 5,000 & 10,000 \\ \hline Bonds Payable (20X6) & 800,000 & 900,000 \\ \hline Common Stock (100,000 shares) & 200,000 & 200,000 \\ \hline Retained Earnings & 400,000 & 500,000 \\ \hline Total Liabilities' and Shareholders & $1,610,000 & $1,710,000 \\ \hline Equity & & \\ \hline \end{tabular} A.E. Neuman Corporation Income Statement For the Year Ended December 31, 20X5 \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, 20X5 } \\ \hline Sales & $5,500,000 \\ \hline Less: Cost of Goods Sold & 4,200,000 \\ \hline Gross Profit & 1,300,000 \\ \hline Less: Selling, General \& Administrative Expenses & 260,000 \\ \hline Operating profit & 1,040,000 \\ \hline Less: Amortization Expense & 150,000 \\ \hline Earnings Before Interest and Taxes & 890,000 \\ \hline Less: Interest Expense & 90,000 \\ \hline Eamings Before Taxes & 800,000 \\ \hline Less: Taxes (50\%) & 400,000 \\ \hline Net Income & $400,000 \\ \hline \end{tabular}