Please check my answer for accuracy.

Dividends as a Flexible Financial Account. Schwartz uses dividends as a flexible financial account. Compute the amount of dividends you can assume that Schwatz will pay. Present the projected balance sheet.

Answer:

Year+1 Balance Sheet Amounts before Plugging Dividends

Total Assets $200

Accrued Liabilities $ 43

Long-term debt $80

Common stock (at par) $ 20

Retained Earnings $34

Year+ Net income $40

Total Liabilities and Equity

Before plugging Dividends $217

Necessary plug to increase dividends to the balance sheet : $ 17 (217- 200)

Schwartz Company

Projected Balance sheet

(Year +1 Balance Sheet amounts after plugging Dividends :)

Total assets $ 200

Accrued Liabilities $ 43

Long-term debt $80

Common stock (at par) $20

Ending Retained Earnings $57 [$34(previous) + $ 40 net income $ 17 dividends]

Total liabilities and equity $200 [= amount total assets]