A firm has projected sales of $328,000,costs of goods sold equal to 68% of sales,interest of $18,500,a tax rate of 35%,and a dividend payout ratio of 60%.What will be the addition to retained earnings?

Name: A firm has projected sales of $328,000,costs of goods sold equal to 68% of sales,interest of $18,500,a tax rate of 35%,and a dividend payout ratio of 60%.What will be the addition to retained earnings?
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Question

Quizplus · Accepted Answer

Add to RE = ({[$328,000(1 − 0.68)] − $18,500} × (1 − 0.35)) × (1 − 0.60) = $22,480

A Firm Has Projected Sales of $328,000,costs of Goods Sold