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Consider the following income statement for the Heir Jordan Corporation: Income Statement Sales $45,370 Costs $39,871...

Consider the following income statement for the Heir Jordan Corporation:

Income Statement
Sales $45,370
Costs $39,871
Taxable Income ?
Taxes (35%) ?
Net Income ?
Dividends $1,349

The projected sales growth rate is 11 percent.

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

Solutions

Expert Solution

Solution :

The projected addition to retained earnings (in $) = $ 2,470.14

= $ 2,470 ( when rounded off to 0 decimal places )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 3 weeks ago
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