For this and the next 4 questions. Consider the income statement below. Calculate retained earnings....
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Accounting
For this and the next 4 questions. Consider the income statement below. Calculate retained earnings.
Calculate operating cash flow?
Calculate earnings per share?
Suppose depreciation INCREASES by 80%. Calculate operating cash flow and earnings per share?
Suppose depreciation DECREASES by 80%. Calculate operating cash flow and earnings per share?
| Tax rate: T | 20% |
| Sales | 500,000 |
| Cost of goods sold | 325,000 |
| Gross profit | 175,000 |
| Depreciation | 4,000 |
| Other expenses | 31,000 |
| Total operating expenses | 35,000 |
| EBIT | 140,000 |
| Interest charges | 7,000 |
| EBT | 133,000 |
| Taxes | 26,600 |
| Net income | 106,400 |
| Dividend payout ratio | 25% |
| Stock price: P0 | $12 |
| Shares outstanding: n | 10,000 |
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