Question
In: Finance
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 1 year agoRelated Solutions
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
$
43,200
Costs
34,000
Taxable income
$
9,200
Taxes (24%)
2,208
Net income
$
6,992
Dividends
$
2,700
Addition to retained
earnings
4,292
The projected sales growth rate is 13 percent.
Prepare a pro forma income statement assuming costs vary with
sales and the dividend payout ratio is constant. (Input all
answers as positive values. Do not round intermediate
calculations.)
What is the projected...
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
$
47,900
Costs
33,900
Taxable income
$
14,000
Taxes (21%)
2,940
Net
income
$
11,060
Dividends
$
2,300
Addition to retained earnings
8,760
The projected sales
growth rate is 12 percent.
Prepare a pro forma
income statement assuming costs vary with sales and the dividend
payout ratio is constant.
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 $
46,200 Costs 34,200 Taxable income $ 12,000 Taxes (30%) 3,600 Net
income $ 8,400 Dividends $ 2,800 Addition to retained earnings
5,600 The balance sheet for the Heir Jordan Corporation follows.
Based on this information and the income statement, supply the
missing information using the percentage of sales approach. Assume
that accounts payable vary with sales, whereas notes payable do
not. (Leave no...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement...
Consider the following income statement for the Heir Jordan
Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
$
42,000
Costs
32,800
Taxable income
$
9,200
Taxes (24%)
2,208
Net income
$
6,992
Dividends
$
2,503
Addition to retained
earnings
4,489
The balance sheet for the Heir Jordan Corporation follows.
HEIR JORDAN CORPORATION
Balance Sheet
Assets
Liabilities and Owners’ Equity
Current assets
Current liabilities
Cash
$
3,150
Accounts payable
$
2,400
Accounts receivable
4,500
Notes payable
4,300
Inventory
6,400...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement...
Consider the following income statement for the Heir Jordan
Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
$
43,800
Costs
34,800
Taxable income
$
9,000
Taxes (21%)
1,890
Net income
$
7,110
Dividends
$
2,518
Addition to retained
earnings
4,592
The balance sheet for the Heir Jordan Corporation follows.
HEIR JORDAN CORPORATION
Balance Sheet
Assets
Liabilities and Owners’ Equity
Current assets
Current liabilities
Cash
$
2,700
Accounts payable
$
2,400
Accounts receivable
3,500
Notes payable
5,400
Inventory
9,000...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement...
Consider the following income
statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
$
48,800
Costs
34,800
Taxable income
$
14,000
Taxes (30%)
4,200
Net income
$
9,800
Dividends
$
3,200
Addition to retained
earnings
6,600
The balance sheet for the Heir Jordan Corporation follows. Based
on this information and the income statement, supply the missing
information using the percentage of sales approach. Assume that
accounts payable vary with sales, whereas notes payable do not....
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement...
Consider the following income statement for the Heir Jordan
Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
$
47,900
Costs
33,900
Taxable income
$
14,000
Taxes (22%)
3,080
Net income
$
10,920
Dividends
$
2,508
Addition to retained
earnings
8,412
The balance sheet for the Heir Jordan Corporation follows.
HEIR JORDAN CORPORATION
Balance Sheet
Assets
Liabilities and Owners’ Equity
Current assets
Current liabilities
Cash
$
2,200
Accounts payable
$
4,000
Accounts receivable
5,000
Notes payable
5,100
Inventory
8,000...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement...
Consider the following income
statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
$
47,000
Cost
31,300
Taxable income
$
15,700
Taxes (35%)
5,495
Net income
$
10,205
Dividends
$
2,500
Addition to retained
earnings
7,705
The balance sheet for the Heir
Jordan Corporation follows.
HEIR JORDAN CORPORATION
Balance Sheet
Assets
Liabilities and Owners’ Equity
Current assets
Current
liabilities
Cash
$
2,950
Accounts
payable
$
2,400
Accounts
receivable
4,100
Notes
payable
5,400
Inventory
6,400...
Consider the following statement of comprehensive income for the Dartmoor Corporation: DARTMOOR CORPORATION Statement of...
Consider the following statement of comprehensive income for
the Dartmoor Corporation:
DARTMOOR CORPORATION
Statement of Comprehensive Income
Sales
$
47,000
Cost
31,300
Taxable income
$
15,700
Taxes (35%)
5,495
Net income
$
10,205
Dividends
$
2,500
Addition to retained
earnings
7,705
The statement of financial position for the Dartmoor Corporation
follows. Based on this information and the statement of
comprehensive income, supply the missing information using the
percentage of sales approach. Assume that accounts payable vary
with sales,...
Consider the following statement of comprehensive income for the Dartmoor Corporation: DARTMOOR CORPORATION Statement of...
Consider the following statement of comprehensive income for
the Dartmoor Corporation:
DARTMOOR CORPORATION
Statement of Comprehensive Income
Sales
$
47,000
Cost
31,300
Taxable income
$
15,700
Taxes (34%)
5,338
Net income
$
10,362
Dividends
$
2,500
Addition to retained
earnings
7,705
The statement of financial position for the Dartmoor
Corporation follows.
DARTMOOR CORPORATION
Statement of Financial Position
Assets
Liabilities and Owners’ Equity
Current assets
Current liabilities
Cash
$
2,950
Accounts payable
$
2,400
Accounts receivable
4,100
Notes...
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