Next, solve for the addition to retained FY$23$ Finances

Growth Assumptions

Income Statement

Materials

Step $1$

Step $2$

FY$23$

FY$24$

$\backslash$table$[[$Sales$,$$$24,975,997],[$Cost of Goods Sold,$$19,731,038],[$Other Expenses,$$2,747,360],[$Depreciation$,$$$999,040],[$Taxable Income,$$1,498,559],[$Taxes $(21\%),$$$314,697],[$Net Income,$$1,183,862],[$Dividends$,$$$500,000],[$Add$.$ to Retained Earnings,$$683,862]]$ FY$23$ Finances

Growth Assumptions

Income Statement

Materials

Step $1$

Step $2$

FY$23$

FY$24$

$\backslash$table$[[$Sales$,$$$24,975,997],[$Cost of Goods Sold,$$19,731,038],[$Other Expenses,$$2,747,360],[$Depreciation$,$$$999,040],[$Taxable Income,$$1,498,559],[$Taxes $(21\%),$$$314,697],[$Net Income,$$1,183,862],[$Dividends$,$$$500,000],[$Add$.$ to Retained Earnings,$$683,862]]$ FY$23$ Income Statement

FY$23$

FY$23$ Balance Sheet

FY$23$

FY$23$ YoY growth rate of $17$ percent

Plant currently operating at capacity

Growth will require a new machine costing $$3$ million

Assume additional $$300,000$ of annual depreciation for this new machine $(10\%/$year$)$

earnings for FY$24$

Player

Hint: The owners have not indicated

they wish to increase the dividends paid.

Next, solve for the addition to retained

earnings for FY$24$

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