Question: please help a. Stockholders' equity For stockholders' equity, we need to know how much will be added to stockholders' equity from net income. First, to




a. Stockholders' equity For stockholders' equity, we need to know how much will be added to stockholders' equity from net income. First, to compute the forecasted sales, use the following formula: Forecasted Sales = Current Sales (1+ Sales Growth Rate ) Then, to compute the forecasted account value based on the percentage of sales method, use the following formula: Faranaetad Nat Inmonn - Current Net Income v Faronactad Caloe Forecasted Net Income =CurrentSalesCurrentNetIncome Forecasted Sales To find the additional amount to stockholders' equity, use the following formula: Additions to Stockholders' Equity = Net Income Retention Ratio To determine the new stockholders' equity, use the following formula: New Stockholders' Equity = Current Stockholders' Equity + Addition to Stockholders' Equity The additions to stockholders' equity will be $ (Round to the nearest dollar.) Jim's Espresso expects sales to grow by 10.3% next year. Assume that Jim's pays out 86.6% of its net income. Use the following statements and the percent of sales method to forecast: a. Stockholders' equity b. Accounts payable a. Stockholders' equity The new stockholders' equity will bes (Round to the nearest dollar.) Data table
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