Question

Eric's Market has sales of $28,900, net income of $2,750, and a retention ratio of 65...

Eric's Market has sales of $28,900, net income of $2,750, and a retention ratio of 65 percent. Assume the profit margin and the payout ratio are constant and sales increase by 11 percent. What is the pro forma retained earnings if the current retained earnings balance is $3,737?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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...
Fresno Salads has current sales of $6,000 and a profit margin of 6.5 percent. The firm...
Fresno Salads has current sales of $6,000 and a profit margin of 6.5 percent. The firm estimates that sales will increase by 4 percent next year and that all costs will vary in direct relationship to sales. What is the pro forma net income?
A company has a retention ratio of 65%, net income of $85 million, and 12 million...
A company has a retention ratio of 65%, net income of $85 million, and 12 million shares outstanding. How much should an investor pay now for a stock expected to sell for $60 one year from now if dividends are taxed at 40%, capital gains are taxed at 20%, and a 22% after-tax return is expected on the investment?
Using the Income Statement below, what is the Retention Ratio? Sales                               
Using the Income Statement below, what is the Retention Ratio? Sales                                                                $28,400 Cost of Goods Sold                                          21,200 Gross Profit                                                        $7,200 Depreciation                                                      2,700 Earnings before Interest and Taxes $4,500 Interest Expense                                                     850 Taxable Income                                                $3,650 Net Income                                                        $2,250 Dividends Paid                                                   $660 State your answer in percentage format with two decimal places.
A firm has Net Income = $20 million from Sales = $150 million. The firm’s Debt...
A firm has Net Income = $20 million from Sales = $150 million. The firm’s Debt = $100 million, and the Book Equity = $100 million. a. What are the firm’s PROFIT MARGIN, ASSET TURNOVER, and ASSET/EQUITY MULTIPLE. b. If the firm wants to maintain its current Asset/Equity ratio, along with a payout ratio of 30% of Net Income, what is the firm’s sustainable growth rate? c. The firm is committed to keeping its Debt/Equity ratio constant in the future....
Based on​ Jim's expectation of 9.9% sales growth and payout ratio of 89.86% of net income...
Based on​ Jim's expectation of 9.9% sales growth and payout ratio of 89.86% of net income next​ year, Jim developed the pro forma financial statements given below. What is the amount of net new financing needed for​ Jim's Espresso?  Income Statement Balance Sheet       Sales   $222,405 Assets       Costs Except Depreciation   (109,120) Cash and Equivalents   $16,375   EBITDA   $113,285    Accounts Receivable   2,308   Depreciation   (6,616) Inventories   4,484   EBIT   $106,669 Total Current Assets   $23,167   Interest Expense (net)   (429) Property, Plant, and Equipment  ...
Your firm recorded sales for the most recent year of $10 million generated from an asset...
Your firm recorded sales for the most recent year of $10 million generated from an asset base of $7 million, producing a $500,000 net income. Sales are projected to grow at 20%, causing spontaneous liabilities to increase by $200,000. In the most recent year, $200,000 was paid out as dividends, and the current payout ratio will continue in the upcoming years. What is your firm’s AFN? Hint: g = growth rate of sales = ?? S0 = current sales =...
The most recent financial statements for Retro Machine, Inc., follow. Sales for 2017 are projected to...
The most recent financial statements for Retro Machine, Inc., follow. Sales for 2017 are projected to grow by 10 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets and accounts payable increase spontaneously with sales. RETRO MACHINE, INC. 2016 Income Statement Sales $ 744,050 Costs 578,850 Other expenses 15,550 Earnings before interest and taxes $ 149,650 Interest paid 11,300 Taxable income $ 138,350 Taxes (35%) 48,423...
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them...
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2018, is shown here (millions of dollars): Cash $   3.5 Accounts payable $   9.0 Receivables 26.0 Notes payable 18.0 Inventories 58.0 Line of credit 0 Total current assets $ 87.5 Accruals 8.5 Net fixed assets 35.0 Total current...
1. Fire Corp financial statements:     Pro forma income statement                              Pro f
1. Fire Corp financial statements:     Pro forma income statement                              Pro forma balance sheet                         Sales                 $ 32000               Assets       $   25300      Debt          $   5800        Costs                    24400                                                     Equity          19500        Net income       $    7600               Total         $ 25,300      Total            $25,300        It expects 15% sales increase. It also predicts every item on the balance sheet will increase by 15% as well. It currently pays no dividend. Create the pro forma income statement and balance sheet...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT