The following data for Schwartz Company represent a summary of your first-iteration forecast amounts for Year +1. Schwartz uses dividends as a flexible financial account. Compute the amount of dividends you can assume that Schwartz will pay in order to balance your projected balance sheet. Present the projected balance sheet.
Year +1
Operating Income .............. $ 58
Interest Expense .............. (8)
Income before Tax ............. $ 50
Tax Provision (20.0 percent effective tax rate) .. (10)
Net Income ................. $ 40
Total Assets ............... $200
Accrued Liabilities ............. $ 43
Long-Term Debt ............... $ 80
Common Stock, at par ............ $ 20
Retained Earnings (at the beginning of Year +1) . $ 34