Use the following information to answer the question:
Sales for 2000 are projected to be $25,000; The firm currently uses straight line depreciation; No new equipment purchases are planned for 2000; There will be a 100% earnings distribution for 2000. The current assets, accounts payable, and accrued expenses vary at a constant percent of sales as do COGS and selling expenses. Assume that notes payable is paid off in 2000.
-Retained Earnings for 2000 are projected to be:
A) $4,575
B) $5,000
C)$8,825
D)$9,575

Question

Use the following information to answer the question:
   Sales for 2000 are projected to be $25,000; The firm currently uses straight line depreciation; No new equipment purchases are planned for 2000; There will be a 100% earnings distribution for 2000. The current assets, accounts payable, and accrued expenses vary at a constant percent of sales as do COGS and selling expenses. Assume that notes payable is paid off in 2000.
-Retained Earnings for 2000 are projected to be:
A) $4,575 
B) $5,000 
C)$8,825 
D)$9,575

Quizplus · Accepted Answer

The Answer of Use the following information to answer the question:
   Sales for 2000 are projected to be $25,000; The firm currently uses straight line depreciation; No new equipment purchases are planned for 2000; There will be a 100% earnings distribution for 2000. The current assets, accounts payable, and accrued expenses vary at a constant percent of sales as do COGS and selling expenses. Assume that notes payable is paid off in 2000.
-Retained Earnings for 2000 are projected to be:
A) $4,575 
B) $5,000 
C)$8,825 
D)$9,575

Use the Following Information to Answer the Question