Polaris Industries is forecasting its financial statements for Year 6.Selected financial information for Year 5 is provided in the table.What is Retained Earnings for Year 6?
Selected Financial Information
Polaris Industries Inc.($000s)

*Tax rate is a proportion of Earnings before Taxes.

Question

Polaris Industries is forecasting its financial statements for Year 6.Selected financial information for Year 5 is provided in the table.What is Retained Earnings for Year 6?
Selected Financial Information
Polaris Industries Inc.($000s)

*Tax rate is a proportion of Earnings before Taxes.

Quizplus · Accepted Answer

Retained Earnings₆ = Retained Earnings₅ + Net Income₆ - Dividends₆ Net Income = (Revenues - COGS - SG&A - Depreciation - Interest) × (1-T) Net Income = (1,803,494 - 1,374,383 - 201,393 - 30,084 - 2,177) × (1-0.31) Net Income = $134,907 Retained 11ea7fdb_fc49_5166_a768_7988ad209285_TB2902_11 = 369,240 + 134,907 - 700 = $503,447

Polaris Industries Is Forecasting Its Financial Statements for Year 6