Consider the following income statement for the Heir Jordan Corporation: A 20 percent growth rate in sales
Question:
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 Statemont Sales Taxable income Taxes (34%) Net income $38,000 18,400 $19,600 6,664 $12,936 $5,200 7,736 Dividends Addition to retained earnings
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Given data Sales 38000 Costs 18400 Taxable income 19600 Taxes 666...View the full answer
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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