Outlaws is a general goods retail chain in the High Plains region. Outlaws is forecasting its financial statements for Year 3. Selected financial information for Years 1 and 2 is provided in the table. What is Retained Earnings for Year 3? Selected Financial Information
Outlaws Inc. ($ millions)
$$\begin{array} { | c | c | c | c | }
\hline & \text { Year 2 } & \begin{array} { c }
\text { Ratios } \
\text { (to sales) }
\end{array} & \begin{array} { c }
\text { Forecast } \
\text { Year 3 }
\end{array} \
\hline \text { Revenue } & \$ 29,210 & & \$ 30,817 \
\hline \text { COGS } & 22,152 & 0.758370 & \
\hline \text { SG\&A } & 5,245 & 0.179562 & \
\hline \text { Dep. Exp. } & 621 & & 621 \
\hline \text { EBIT } & 1,192 & & \
\hline \text { Int. Exp. } & 277 & & 277 \
\hline \text { EBT } & 915 & & \
\hline \text { Provision for Income } & & & \
\text { Taxes } & 288 & 0.35 ^ { * } & \
\hline \text { Net Income } & \$ 627 & & \
\hline \text { Dividends } & & &\$225 \
\hline \text { Retained Earnings } & \$ 5,089 & & \
\hline \text { Owner's Equity } & \$ 6,281 & & \
\hline
\end{array}$$ *The tax rate is a percentage of Earnings Before Tax.

Question

Outlaws is a general goods retail chain in the High Plains region. Outlaws is forecasting its financial statements for Year 3. Selected financial information for Years 1 and 2 is provided in the table. What is Retained Earnings for Year 3? Selected Financial Information
Outlaws Inc. ($ millions)
$$\begin{array} { | c | c | c | c | } 
\hline & \text { Year 2 } & \begin{array} { c } 
\text { Ratios } \
\text { (to sales) }
\end{array} & \begin{array} { c } 
\text { Forecast } \
\text { Year 3 }
\end{array} \
\hline \text { Revenue } & \$ 29,210 & & \$ 30,817 \
\hline \text { COGS } & 22,152 & 0.758370 & \
\hline \text { SG\&A } & 5,245 & 0.179562 & \
\hline \text { Dep. Exp. } & 621 & & 621 \
\hline \text { EBIT } & 1,192 & & \
\hline \text { Int. Exp. } & 277 & & 277 \
\hline \text { EBT } & 915 & & \
\hline \text { Provision for Income } & & & \
\text { Taxes } & 288 & 0.35 ^ { * } & \
\hline \text { Net Income } & \$ 627 & & \
\hline \text { Dividends } & & &\$225 \
\hline \text { Retained Earnings } & \$ 5,089 & & \
\hline \text { Owner's Equity } & \$ 6,281 & & \
\hline
\end{array}$$ *The tax rate is a percentage of Earnings Before Tax.

Quizplus · Accepted Answer

The Answer of Outlaws is a general goods retail chain in the High Plains region. Outlaws is forecasting its financial statements for Year 3. Selected financial information for Years 1 and 2 is provided in the table. What is Retained Earnings for Year 3? Selected Financial Information
Outlaws Inc. ($ millions)
$$\begin{array} { | c | c | c | c | } 
\hline & \text { Year 2 } & \begin{array} { c } 
\text { Ratios } \
\text { (to sales) }
\end{array} & \begin{array} { c } 
\text { Forecast } \
\text { Year 3 }
\end{array} \
\hline \text { Revenue } & \$ 29,210 & & \$ 30,817 \
\hline \text { COGS } & 22,152 & 0.758370 & \
\hline \text { SG\&A } & 5,245 & 0.179562 & \
\hline \text { Dep. Exp. } & 621 & & 621 \
\hline \text { EBIT } & 1,192 & & \
\hline \text { Int. Exp. } & 277 & & 277 \
\hline \text { EBT } & 915 & & \
\hline \text { Provision for Income } & & & \
\text { Taxes } & 288 & 0.35 ^ { * } & \
\hline \text { Net Income } & \$ 627 & & \
\hline \text { Dividends } & & &\$225 \
\hline \text { Retained Earnings } & \$ 5,089 & & \
\hline \text { Owner's Equity } & \$ 6,281 & & \
\hline
\end{array}$$ *The tax rate is a percentage of Earnings Before Tax.

Outlaws Is a General Goods Retail Chain in the High