Part A Part B Given: Kestrel Corporation Sales Costs Taxable income (IBT) Taxes Net income Dividends Addition to retained earnings $ 50,600,000 43,010,000 85.0% of Sales 7,590,000 15.0% of Sales 1,593,900 21% Tax Rate 5,996,100 1,856,800 4,139,300 Current assets $ 8,500,000 Short-term debt $ 7,200,000 Net fixed assets 17,900,000 Long-term debt 5,000,000 Common stock $ 3,200,000 Accumulated retained earnings 11,000,000 Total equity $ 14,200,000 Total assets $ 26,400,000 Total L&E $ 26,400,000 Output area: Kestrel Corporation Sales Costs Taxable income (IBT) Taxes Net income Dividends Addition to retained earnings Current assets Net fixed assets Short-term debt Long-term debt Changes 10.0% growth 84.0% of Sales 16.0% of Sales 21% Tax Rate Common stock Accumulated retained earnings Total equity Total assets $ Total L&E Kestrel Corporation Sales Costs Taxable income (IBT) Taxes Net income Dividends Addition to retained earnings Current assets Net fixed assets Short-term debt Long-term debt Common stock Changes Box 2 $ $ Box 1 growth 84.0% of Sales 16.0% of Sales 21% Tax Rate Accumulated retained earnings Total equity $ Total assets $ Total L&E $ Memo: $7.8 million limit