Question

Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses...

Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 10% in 2017 and all assets and liabilities increase correspondingly. Also assume no new equity is issued and none is repurchased.

Income Statement
Sales $ 4,000
Costs, including interest 3,500
Net income $ 500
Balance Sheet, Year-End
2016 2015 2016 2015
Net assets $ 3,200 $ 2,700 Debt $ 1,200 $ 1,033
Equity 2,000 1,667
Total $ 3,200 $ 2,700 Total $ 3,200 $ 2,700

a. What is the value of the addition to retained earnings for 2017?

Addition to retained earnings            $

b. What is the residual dividend for 2017?

Residual dividend            $

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