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kiruha [24]
2 years ago
10

Khadimally, Incorporated, expects sales of $763,500 next year. The net profit margin is 5.3 percent and the firm has a dividend

payout ratio of 18 percent. What is the projected increase in retained earnings
Business
1 answer:
Nutka1998 [239]2 years ago
3 0

Based on the expected sales, net profit margin, and dividend payout ratio, the projected increase in retained earnings for Khadimally Inc, is $33,181.71.

<h3>What is the projected increase in retained earnings?</h3>

First find the expected profit:

= Sales x Net profit margin

= 763,500 x 5.3%

= $40,465.50

The projected increase is:

= 40,465.50 x (1 - 18%)

= $33,181.71

Find out more on retained earnings at brainly.com/question/25998979.

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