The Atlantic Co. is an all-equity company with sales of $21,600, costs of $14,780, depreciation of $2,000, and taxes of $1,012.

Question

4 years ago

5

The Atlantic Co. is an all-equity company with sales of $21,600, costs of $14,780, depreciation of $2,000, and taxes of $1,012.

The dividend payout ratio is 12 percent. Sales are expected to increase by 22 percent next year. What is the pro forma addition to retained earnings assuming all costs vary proportionately with sales

Business

1 answer:

lora16 [44] · Answer 1 · 2021-12-02T15:49:46+03:00

lora16 [44]4 years ago

3 0

Answer:

$5174.75

Explanation:

(21600-14780-2000)*1.22*0.88=5174.75