NEED ASAP PLEASE! Below is Acme Company's income statement for the year ended 12/31/17: ...
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NEED ASAP PLEASE!
Below is Acme Company's income statement for the year ended 12/31/17:
| Sales | $7,000 |
| Operating costs | 3,000 |
| EBIT | 4,000 |
| Interest | 200 |
| Taxable income | 3,800 |
| Taxes (25%) | 950 |
| Net income | $2,850 |
The company forecasts that its sales will increase by 10 percent in 2018 and its operating costs will increase in proportion to sales. The company's interest expense is expected to remain at $200, and the tax rate will remain at 25 percent. The company plans to pay out 60 percent of its net income as dividends. What is the forecasted change to retained earnings for 2018?
Select one:
A.
$1,008
B.
$1,140
C.
$1,710
D.
$2,850
E.
None of the above
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