Lexington, Inc. reports the following in its 2017 financial statements (in thousands):
Sales and net income are forecasted to grow by 5% per year.
a. What will forecasted sales be in 2018 and 2019?
b. Determine the balance in retained earnings at the end of 2018 and 2019 assuming forecasted net income is $17,556 thousand for 2018 and $18,434 thousand for 2019.

Question

Lexington, Inc. reports the following in its 2017 financial statements (in thousands):
  Sales and net income are forecasted to grow by 5% per year. 
a. What will forecasted sales be in 2018 and 2019?
b. Determine the balance in retained earnings at the end of 2018 and 2019 assuming forecasted net income is $17,556 thousand for 2018 and $18,434 thousand for 2019.

Quizplus · Accepted Answer

The Answer of Lexington, Inc. reports the following in its 2017 financial statements (in thousands):
  Sales and net income are forecasted to grow by 5% per year. 
a. What will forecasted sales be in 2018 and 2019?
b. Determine the balance in retained earnings at the end of 2018 and 2019 assuming forecasted net income is $17,556 thousand for 2018 and $18,434 thousand for 2019.