Consider the following income 'statement for the Mickey Mouse Corporation: Mickey Mouse Corporation Income Statement Sales Costs Taxable income Taxes (22%) Net income Dividends $ 2,200 Addition to retained earnings 5,912 $ 45,600 35,200 HEIR JORDAN CORPORATION Pro Forma Income Statement $ 10,400 2,288 $ 8,112 The projected sales growth rate is 18 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Do not round) Intermediate calculations and round your answers to the nearest whole number, e.g.. 32.)
Consider the following income 'statement for the Mickey Mouse Corporation: Mickey Mouse Corporation Income Statement Sales Costs Taxable income Taxes (22%) Net income Dividends $ 2,200 Addition to retained earnings 5,912 $ 45,600 35,200 HEIR JORDAN CORPORATION Pro Forma Income Statement $ 10,400 2,288 $ 8,112 The projected sales growth rate is 18 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Do not round) Intermediate calculations and round your answers to the nearest whole number, e.g.. 32.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Consider the following income 'statement for the Mickey Mouse Corporation:
Mickey Mouse Corporation
Income Statement
Sales
Costs
Taxable income
Taxes (22%)
Net income
Dividends
$ 2,200
Addition to retained earnings 5,912
$ 45,600
35,200
HEIR JORDAN CORPORATION
Pro Forma Income Statement
$ 10,400
2,288
$8,112
The projected sales growth rate is 18 percent. Prepare a pro forma income statement
assuming costs vary with sales and the dividend payout ratio is constant. (Do not round)
Intermediate calculations and round your answers to the nearest whole number, e.g..
32.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc94e6d1f-417b-4288-9be7-d0bb82266d6b%2F91a8fef5-a97a-4e67-9494-58974c7ac44e%2F8vg26cq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following income 'statement for the Mickey Mouse Corporation:
Mickey Mouse Corporation
Income Statement
Sales
Costs
Taxable income
Taxes (22%)
Net income
Dividends
$ 2,200
Addition to retained earnings 5,912
$ 45,600
35,200
HEIR JORDAN CORPORATION
Pro Forma Income Statement
$ 10,400
2,288
$8,112
The projected sales growth rate is 18 percent. Prepare a pro forma income statement
assuming costs vary with sales and the dividend payout ratio is constant. (Do not round)
Intermediate calculations and round your answers to the nearest whole number, e.g..
32.)
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