A company had net income of $4,500 last year on sales of $53,000. Sales are expected to increase by 11% next year and the dividend payout ratio is 40%. This firm uses the percentage of sales approach when compiling pro forma statements. What amount will expect to be added to retained earnings next year?

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The Answer of A company had net income of $4,500 last year on sales of $53,000. Sales are expected to increase by 11% next year and the dividend payout ratio is 40%. This firm uses the percentage of sales approach when compiling pro forma statements. What amount will expect to be added to retained earnings next year?

A Company Had Net Income of $4,500 Last Year on Sales