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nevsk [136]
3 years ago
8

The Broom Maker currently has annual sales of $387,000 and is operating at 88 percent of capacity. The profit margin of 5.5 perc

ent and the dividend payout ratio of 30 percent are projected to remain constant. What is the projected addition to retained earnings for next year based on a sales growth rate of 4.8 percent?
Business
1 answer:
densk [106]3 years ago
8 0

Answer: $15,614.68

Explanation:

Sales are projected to grow by 4.8% the next year.

= 387,000 * ( 1 + 4.8%)

= $405,576

The Projected addition to Retained Earnings = Expected Sales * Profit Margin * Retention ratio ( amount that is not paid as Dividend)

= 405,576 * 0.055 * ( 1 - 0.3)

= $15,614.68

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Assume you are the internal controls expert for your company. Your boss has read about Madoff’s Ponzi scheme described in a page
kiruha [24]

Answer:

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3 0
3 years ago
The benefits of belonging to professional organizations include the development of professional contacts and the opportunity to
ziro4ka [17]

Answer:

True

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7 0
3 years ago
Read 2 more answers
You wish to sell short 100 shares of XYZ corporation stock. If the last two transactions were at $34.10 followed by $34.15, you
yan [13]

Answer: b. 34.15 or higher

Explanation:

Short sales refer to the sale of borrowed stocks in anticipation that the stock price of the underlying stock will fall. This will then enable you to make a profit by buying the cheaper shares and giving it back to the entity you borrowed from thereby making a profit.

With short sales, the price is usually upward trending so will normally increase from the last price. As the last price here was $34.15, that would be the likely minimum for the next sale.

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2 years ago
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e-lub [12.9K]
A market demand schedule
5 0
3 years ago
Read 2 more answers
Maddox Auto Parts, Inc., contracted with Billy's Mufflers Co. to purchase 35 mufflers from their warehouse supplies. All the muf
juin [17]

Answer: A. at the time of contracting.

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Therefore, the correct option is A.

5 0
2 years ago
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