You are given the following information for Proctas Inc., a retail firm in Cape Town listed...

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You are given the following information for Proctas Inc., a retail firm in Cape Town listed on the JSE. Proctas, Inc. 2021 Income Statement (R in millions) Net sales Less: Cost of goods sold Less: Depreciation R9,625 5,225 1,890 Earnings Before interest and taxes 2,510 Less: Interest paid Taxable income Less: Taxes Net income Addition to retained earnings Dividends paid Proctas, Inc. 2020 and 2021 Balance Sheet 850 1,660 581 R1,079 R679 400 (R in millions) 2020 2021 2020 2021 Cash R1,455 R260 Accounts payable R1,150 R2,863 Accounts rec. 2,460 3,975 Notes payable 2,600 1,628 Inventory 1,405 885 Total R3,750 R4,491 Total R5,320 R5,120 Long-term debt 7,000 7,600 Net fixed assets 19,300 21,720 Common stock 5,500 5,700 Retained earnings 8,370 9,049 Total assets R24.620 R26.840 Total liabilities& equity R24.620 R26.840 Required a. Calculate the growth rate of Proctas Inc for 2021./5/ b. How will the growth rate change if Proctas Inc increased its dividends to R600 million? /3/ You are given the following information for Proctas Inc., a retail firm in Cape Town listed on the JSE. Proctas, Inc. 2021 Income Statement (R in millions) Net sales Less: Cost of goods sold Less: Depreciation R9,625 5,225 1,890 Earnings Before interest and taxes 2,510 Less: Interest paid Taxable income Less: Taxes Net income Addition to retained earnings Dividends paid Proctas, Inc. 2020 and 2021 Balance Sheet 850 1,660 581 R1,079 R679 400 (R in millions) 2020 2021 2020 2021 Cash R1,455 R260 Accounts payable R1,150 R2,863 Accounts rec. 2,460 3,975 Notes payable 2,600 1,628 Inventory 1,405 885 Total R3,750 R4,491 Total R5,320 R5,120 Long-term debt 7,000 7,600 Net fixed assets 19,300 21,720 Common stock 5,500 5,700 Retained earnings 8,370 9,049 Total assets R24.620 R26.840 Total liabilities& equity R24.620 R26.840 Required a. Calculate the growth rate of Proctas Inc for 2021./5/ b. How will the growth rate change if Proctas Inc increased its dividends to R600 million? /3/

Answer rating: 100% (QA)

a Calculate the growth rate of Proctas Inc for 2021 Growth Rate Net income ... View the full answer