Question

Consider the following income statement for the Heir Jordan Corporation: Income Statement Sales $49252 Costs $36892...

Consider the following income statement for the Heir Jordan Corporation:

Income Statement
Sales $49252
Costs $36892
Taxable Income ?
Taxes (35%) ?
Net Income ?
Dividends $1385

The projected sales growth rate is 13 percent.

What is the projected addition to retained earnings (in $)? Assume costs vary with sales and the dividend payout ratio is constant.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement   Sales...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement   Sales $ 45,900   Costs 35,400   Taxable income $ 10,500   Taxes (22%) 2,310   Net income $ 8,190       Dividends $ 2,510       Addition to retained earnings 5,680 HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity   Current assets   Current liabilities     Cash $ 2,300     Accounts payable $ 4,000     Accounts receivable 5,200     Notes payable 8,100     Inventory 8,000       Total $ 12,100       Total $ 15,500   Long-term debt $ 21,000   Owners’ equity...
Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATION Income Statement...
Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATION Income Statement   Sales $ 48,500   Costs 34,500   Taxable income $ 14,000   Taxes (35%) 4,900   Net income $ 9,100       Dividends $ 2,900       Addition to retained earnings 6,200    The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not....
Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATION Income Statement...
Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATION Income Statement   Sales $ 43,200   Costs 34,000   Taxable income $ 9,200   Taxes (35%) 3,220   Net income $ 5,980       Dividends $ 2,700       Addition to retained earnings 3,280    The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not....
Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating...
Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (25%) 40 Net income $120 Dividends $40 Addition to retained earnings $80 For the coming year, the company is forecasting a 35% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 60% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to...
Austin Grocers recently reported the following 2018 income statement (in millions of dollars): Sales $700 Operating...
Austin Grocers recently reported the following 2018 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 35% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to...
KBC, Inc. has the financial profile illustrated below. Income statement: Sales: 222,300 Costs: 133,000 Taxable income:...
KBC, Inc. has the financial profile illustrated below. Income statement: Sales: 222,300 Costs: 133,000 Taxable income: 89,300 Taxes (34%): 30,362 Net income: 58,938 Tax rate: 34% Dividend paid: 15,500 Balance Sheet: Assets: 510,600 Debt: 100,500 Equitity: 410,100 Total: 510,600 Next year, Margins (%) will hold steady, and Assets grow proportionally with Sales. Debt will remain unchanged. ABC intends to maintain the same constant dividend payout ratio (dividend as a percent of Net Income) as this year. Next year’s sales are...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 65% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 30% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT