Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) Net income $ 48,000 37,400 $ 10,600 2,332 $ 8,268 Dividends Addition to retained earnings $ 3,100 5,168 A 20 percent growth rate in sales is projected. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. Note: Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Sales HEIR JORDAN CORPORATION Pro Forma Income Statement Costs Taxable income Taxes Net income What is the projected addition to retained earnings? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Addition to retained earnings
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) Net income $ 48,000 37,400 $ 10,600 2,332 $ 8,268 Dividends Addition to retained earnings $ 3,100 5,168 A 20 percent growth rate in sales is projected. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. Note: Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Sales HEIR JORDAN CORPORATION Pro Forma Income Statement Costs Taxable income Taxes Net income What is the projected addition to retained earnings? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Addition to retained earnings
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
Costs
Taxable income
Taxes (22%)
Net income
$ 48,000
37,400
$ 10,600
2,332
$ 8,268
Dividends
Addition to retained earnings
$ 3,100
5,168
A 20 percent growth rate in sales is projected.
Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant.
Note: Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole
number, e.g., 32.
Sales
HEIR JORDAN CORPORATION
Pro Forma Income Statement
Costs
Taxable income
Taxes
Net income
What is the projected addition to retained earnings?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Addition to retained earnings
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