FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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. (Input all answers as positive values. Do not round
intermediate calculations and round your answers to the nearest whole number, e.g.,
32.)
HEIR JORDAN CORPORATION
Pro Forma Income Statement
Sales
Costs
Taxable income
Taxes
Net income
What is the projected addition to retained earnings? (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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Transcribed Image Text: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. (Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) HEIR JORDAN CORPORATION Pro Forma Income Statement Sales Costs Taxable income Taxes Net income What is the projected addition to retained earnings? (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
Dividends
Addition to retained earnings
HEIR JORDAN CORPORATION
Pro Forma Income Statement
$3,500
5,938
Sales
Costs
Taxable income
Taxes
Net income
$ 53,000
40,900
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. (Input all answers as positive values. Do not round
intermediate calculations and round your answers to the nearest whole number, e.g.,
32.)
$ 12,100
2,662
$ 9,438
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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 Dividends Addition to retained earnings HEIR JORDAN CORPORATION Pro Forma Income Statement $3,500 5,938 Sales Costs Taxable income Taxes Net income $ 53,000 40,900 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. (Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) $ 12,100 2,662 $ 9,438
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