An online discount store has its most recent income statement (i.e., whole year 2022) and balance...

 

Transcribed Image Text:

An online discount store has its most recent income statement (i.e., whole year 2022) and balance sheet (f.e., end of year 2022) as follows: Income statement ($ million) Sales 39 Costs 31.2 Net income 7.8 Total assets Sales, cost and total assets are expected to grow by 10% the following year. Balance sheet ($ million) 2+ decimals Current assets 14.2 Fixed assets 56.8 Debt 28.4 Equity 42.6 71 Total 71 Part 1 Attempt 1/3 for 10 pts. If company expects to keep Debt-Equity ratio fixed from year to year, based on your forecast, is the company paying out any dividend in the following year? What's the amount ($ million)? An online discount store has its most recent income statement (i.e., whole year 2022) and balance sheet (f.e., end of year 2022) as follows: Income statement ($ million) Sales 39 Costs 31.2 Net income 7.8 Total assets Sales, cost and total assets are expected to grow by 10% the following year. Balance sheet ($ million) 2+ decimals Current assets 14.2 Fixed assets 56.8 Debt 28.4 Equity 42.6 71 Total 71 Part 1 Attempt 1/3 for 10 pts. If company expects to keep Debt-Equity ratio fixed from year to year, based on your forecast, is the company paying out any dividend in the following year? What's the amount ($ million)?

Answer rating: 100% (QA)

To determine if the company is paying out any dividend in the following year we need to calculate th... View the full answer