Question

BALANCE SHEETS:                                        &nbs

BALANCE SHEETS:

                                                                                    2017                            2018

Assets:

                        Cash                                                    74,181                         66,301

                        Accounts Receivable                           35,673                         48,995

                        Inventory                                            4,855                           3,986

                        Other Current Assets                          13,936                         12,057

                        Fixed Assets, net                                 33,783                         41,304

                        Investments                                         212,891                       233,082

                        Total Assets                                        375,319                       405,725

Liabilities and Equity:

                        Accounts Payable                                44,242                         55,888

                        Other Current Liabilities                           50,226                         55,416

                        Long-Term Debt                                    103,703                       102,519

                        Other Noncurrent Liabilities                     43,251                         48,209

                        Common Stock                                  35,567                         33,293

                        Retained Earnings                                   98,330                         110,400

                        Total Liabilities and Equity                       375,319                       405,725

INCOME STATEMENT:

                                                                                                            FY 2018

            Revenue                                                                                  265,595

            Cost of Goods Sold                                                                163,756

            General and Administrative                                                    14,793

            Depreciation Expense                                                             10,903

            Earnings Before Interest and Taxes                                        76,143

            Interest Expense                                                                      3,240

            Pretax Net Income                                                                  72,903

            Income Taxes                                                                          13,372

            Net Income                                                                             59,531

  1. If the analysts who follow Apple project 2019 sales to increase by 7.4% over 2018, its after-tax profit margin to remain the same, and anticipate a 60% dividend payout ratio, what are the projected retained earnings by the end of 2019?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

HI

Apple 2018 Sales= $265,595

Net Income in 2018 = 59,531

Net Profit Margin = Net Income/Sales = 59531/265595 = 22.41%

IN 2019 Sales to grow by 7.4%

so Sales in 2019 = 265595*(1+7.4%) = $285,249.03

Profit Margin remain the same

so in 2019 Net Income = 285249.03*22.41% = $63,936.29

dividend payout ratio =60%

so plowback ratio = 1-60% = 40%

Hence retained earning in 2019 = 40%*63936.29 = $25,574.52

So projected Retained earning at end of 2019 = Retained Earning at end of 2018 +2019 retained earning

=110400+25574.52 = $135,974.52

Thanks

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
BALANCE SHEETS: Assets:                                       &n
BALANCE SHEETS: Assets:                                                                                    2017                            2018                         Cash                                                  74,181                         66,301                         Accounts Receivable                           35,673                         48,995                         Inventory                                            4,855                           3,986                         Other Current Assets                          13,936                         12,057                         Fixed Assets, net                                 33,783                         41,304                         Investments                                         212,891                       233,082                         Total Assets                                        375,319                       405,725 Liabilities and Equity:                         Accounts Payable                             44,242                         55,888                         Other Current Liabilities                     50,226                         55,416                         Long-Term Debt                                 103,703                       102,519                         Other Noncurrent...
BALANCE SHEETS: Assets:                                       &n
BALANCE SHEETS: Assets:                                                                                    2017                            2018                         Cash                                                  74,181                         66,301                         Accounts Receivable                           35,673                         48,995                         Inventory                                            4,855                           3,986                         Other Current Assets                          13,936                         12,057                         Fixed Assets, net                                 33,783                         41,304                         Investments                                         212,891                       233,082                         Total Assets                                        375,319                       405,725 Liabilities and Equity:                         Accounts Payable                             44,242                         55,888                         Other Current Liabilities                     50,226                         55,416                         Long-Term Debt                                 103,703                       102,519                         Other Noncurrent...
YOU MUST SHOW ALL CALCULATIONS TO EARN CREDIT.                                    
YOU MUST SHOW ALL CALCULATIONS TO EARN CREDIT.                                                                                     2017                            2018 BALANCE SHEETS: Assets:                         Cash                                                    74,181                         66,301                         Accounts Receivable                          35,673                         48,995                         Inventory                                            4,855                           3,986                         Other Current Assets                          13,936                         12,057                         Fixed Assets, net                                 33,783                         41,304                         Investments                                         212,891                       233,082                         Total Assets                                        375,319                       405,725 Liabilities and Equity:                         Accounts Payable                              ...
BALANCE SHEETS: 2016 2017 Assets:                         Cash             &nbs
BALANCE SHEETS: 2016 2017 Assets:                         Cash                                        120,000                       160,000                         Accounts Receivable               520,000                       620,000                         Inventory                                305,000                       290,000                         Fixed Assets, net                    410,000                       510,000                         Total Assets                           1,355,000                    1,580,000 Liabilities and Equity:                         Accounts Payable                   350,000                       $375,000                         Long-term Debt                      500,000                       625,000                         Common Stock                       50,000                         75,000                         Retained Earnings                   455,000                       505,000                         Total Liabilities and Equity    1,355,000                    1,580,000 INCOME STATEMENT:             Revenue                                                                                  3,500,000             Cost of Goods Sold                                                                2,275,000...
Jason has been hired to evaluate the consolidated statement of operations of Apple Corporation. Do the...
Jason has been hired to evaluate the consolidated statement of operations of Apple Corporation. Do the following: How is Apple performing? You must support your answer. Compute the earnings per share for the three years presented. Prepare vertically integrated consolidated statements of operations for the three years presented. CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions 12 Months Ended Sep. 29, 2018 Sep. 30, 2017 Sep. 24, 2016 Income Statement [Abstract] Net sales $ 265,595...
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of...
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019   2018   2019   2018   2019 Assets Liabilities and Owners’ Equity   Current assets Current liabilities      Cash $ 5,298 $ 5,827    Accounts payable $ 3,754 $ 3,986      Accounts receivable 7,707 8,477    Notes payable 3,045 3,318      Inventory 12,150 21,956    Other 152 179         Total $ 25,155 $ 36,260       Total $ 6,951 $ 7,483 Long-term debt $ 24,700 $ 16,000 Owners’ equity    Common stock       and...
QS 16-26B Direct: Computing operating cash outflows LO P5 CRUZ, INC. Comparative Balance Sheets December 31,...
QS 16-26B Direct: Computing operating cash outflows LO P5 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 62,700 $ 15,700 Accounts receivable, net 27,000 33,300 Inventory 56,600 62,500 Prepaid expenses 3,500 2,900 Total current assets 149,800 114,400 Furniture 70,500 82,200 Accum. depreciation—Furniture (10,900 ) (6,200 ) Total assets $ 209,400 $ 190,400 Liabilities and Equity Accounts payable $ 9,900 $ 14,000 Wages payable 5,900 3,300 Income taxes payable 1,000 1,800 Total current liabilities 16,800 19,100...
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of...
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019   2018   2019   2018   2019 Assets Liabilities and Owners’ Equity   Current assets Current liabilities      Cash $ 3,001 $ 2,957    Accounts payable $ 2,188 $ 2,670      Accounts receivable 4,732 5,711    Notes payable 1,785 2,186      Inventory 12,618 13,712    Other 97 114         Total $ 20,351 $ 22,380       Total $ 4,070 $ 4,970 Long-term debt $ 14,000 $ 16,760 Owners’ equity    Common stock       and...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets 2019 2018 Assets Cash and equivalents $90   $75   Accounts receivable 275   300   Inventories 375   250         Total current assets $740   $625   Net plant and equipment 2,300   1,490   Total assets $3,040   $2,115   Liabilities and Equity Accounts payable $150   $85   Accruals 75   50   Notes payable 140   65         Total current liabilities $365   $200   Long-term debt 450   290   Common stock 1,225   1,225   Retained earnings 1,000   400   Total liabilities...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets Assets 2019 2018 Cash and equivalents $100   $85   Accounts receivable 275   300   Inventories 375   250         Total current assets $750   $635   Net plant and equipment 2,300   1,490   Total assets $3,050   $2,125   Liabilities and Equity Accounts payable $150   $85   Accruals 75   50   Notes payable 150   75         Total current liabilities $375   $210   Long-term debt 450   290         Total liabilities 825   500   Common stock 1,225   1,225   Retained earnings...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT