You are preparing pro forma financial statements for $2021$ using the percent$-$of$-$sales method. Sales were $$100,000$ in $2020$ and are projected to be $$120,000$ in $2021.$ Net income was $$5,000$ in $2020$ and is projected to be $$6,000$ in $2021.$ Equity was $$45,000$ at year$-$end $2019$ and $$50,000$ at year$-$end $2020.$ Assuming that this company never issues new equity, never repurchases equity, and never changes its dividend payout ratio, what would be projected for equity at year$-$end $2021?$

Answer rating: 100% (QA)

The equity of a company at yearend can be calculated using the following equation Equity at yearend ... View the full answer