The most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. RETRO MACHINE, INC. 2020 Income Statement $ 751,000 586,000 22,000 Sales Costs Other expenses Earnings before interest and taxes $ 143,000 Interest paid 18,000 $ 125,000 28,750 Taxable income Taxes (23%) Net income $ 96,250 Dividends $29,838 Addition to retained 66,412 earnings
The most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. RETRO MACHINE, INC. 2020 Income Statement $ 751,000 586,000 22,000 Sales Costs Other expenses Earnings before interest and taxes $ 143,000 Interest paid 18,000 $ 125,000 28,750 Taxable income Taxes (23%) Net income $ 96,250 Dividends $29,838 Addition to retained 66,412 earnings
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Financial Planning And Forecasting
Section: Chapter Questions
Problem 8P: LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and...
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