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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