ESG Wealth Management, a U.S. based investment management company, has experienced healthy growth over the past...

  

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ESG Wealth Management, a U.S. based investment management company, has experienced healthy growth over the past few years and predicts continued growth in the future. Their income statement for the recently completed year is below. Sales Costs Depreciation EBIT Income Statement Interest expense EBT Taxes Net Income. Dividends Additions to Retained Earnings 1,000,000 (220,000) (180.000) 600,000 (100.000) 500,000 (100.000) 400,000 180,000 220,000 MacBook Pro The company expects sales to rise by 11 percent next year. Costs are expected to increase spontaneously with sales Depreciation and interest expense will remain constant. The tax rate will also remain constant. The company will continue to pay out 45 percent of their net income as dividends. Prepare next year's income statement. What will their additions to retained earnings be? Round your answer to the nearest whole number and no commas. Answer: Next page ESG Wealth Management, a U.S. based investment management company, has experienced healthy growth over the past few years and predicts continued growth in the future. Their income statement for the recently completed year is below. Sales Costs Depreciation EBIT Income Statement Interest expense EBT Taxes Net Income. Dividends Additions to Retained Earnings 1,000,000 (220,000) (180.000) 600,000 (100.000) 500,000 (100.000) 400,000 180,000 220,000 MacBook Pro The company expects sales to rise by 11 percent next year. Costs are expected to increase spontaneously with sales Depreciation and interest expense will remain constant. The tax rate will also remain constant. The company will continue to pay out 45 percent of their net income as dividends. Prepare next year's income statement. What will their additions to retained earnings be? Round your answer to the nearest whole number and no commas. Answer: Next page

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To prepare next years income statement we need to calculate the updated values for each component ba... View the full answer