Consider the following income statement for the Heir Jordan Corporation: A 20 percent growth rate in sales
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Consider the following income statement for the Heir Jordan Corporation:
A 20 percent growth rate in sales is projected. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. What is the projected addition to retained earnings?
Transcribed Image Text:
HEIR JORDAN CORPORATION Income Statement Sales $53,000 Costs 40,900 Taxable income $12,100 Taxes (22%) 2,662 Net income $ 9,438 Dividends $3,500 Addition to retained earnings 5,938
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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