Calculate payout ratio given the following information: cash dividends paid = $4,200; sales = $80,000; cost of goods sold = $30,000; selling and administrative expenses = $8,000; interest expense = $2,000; tax rate = 30%.

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The payout ratio is calculated as the ratio of dividends paid to net income. First, calculate net income: Sales ($80,000) - Cost of Goods Sold ($30,000) - Selling and Administrative Expenses ($8,000) - Interest Expense ($2,000) = Operating Income of $40,000. Then, apply the tax rate: $40,000 * (1 - 0.30) = $28,000 net income. Finally, calculate the payout ratio: ($4,200 / $28,000) * 100% = 15%.

Calculate Payout Ratio Given the Following Information: Cash Dividends Paid