Total sales in 2007 were $100,000 resulting in a net income of $10,000. Sales are expected to grow by 20% in 2008; all income statement items move spontaneously with sales. If the dividend payout ratio is 10% of net income,calculate common equity for 2008.

End of Year 2007

Total Assets $75,000

Accounts Payable $3,000

Notes Payable 5,000

Long term debt 20,000

Common stock 25,000

Retained earnings 22,000

Total Liabilities and Equity $75,000

Answer rating: 100% (QA)

Sales in 2007 were 100000 Net income in 2007 was 10000 Sales a... View the full answer