You have the balance sheet of your business for the end of this quarter. You expect...

 

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You have the balance sheet of your business for the end of this quarter. You expect the sales will grow by 10% over the next quarter. All other items except shareholders' equity will also change by the same percentage. The capital is not changing. You also expect to generate $20,000 of net income. How much dividends should you expect to pay during the next quarter? Hint: you can use R/E as a plug number. Assets Current assets $15,000 Non-current $113,000 assets Liabilities $3,000 Current liabilities Long-term liabilities $15,000 Shareholders' Equity Capital (shares) Retained Earnings 105,000 $5,000 You have the balance sheet of your business for the end of this quarter. You expect the sales will grow by 10% over the next quarter. All other items except shareholders' equity will also change by the same percentage. The capital is not changing. You also expect to generate $20,000 of net income. How much dividends should you expect to pay during the next quarter? Hint: you can use R/E as a plug number. Assets Current assets $15,000 Non-current $113,000 assets Liabilities $3,000 Current liabilities Long-term liabilities $15,000 Shareholders' Equity Capital (shares) Retained Earnings 105,000 $5,000

Answer rating: 100% (QA)

To determine the dividends to be paid during the next quarter we first need to calculate the new bal... View the full answer