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Steven Garcia, president of Garcia Corporation, believes that it is a good practice for a...

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Accounting

Steven Garcia, president of Garcia Corporation, believes that it is a good practice for a company to maintain a constant payout of dividends relative to its earnings. Last year, net income was $670,000, and the corporation paid $120,600 in dividends. This year, due to some unusual circumstances, the corporation had income of $1,520,000. Steven expects next year's net income to be about $770,000.
What was Garcia Corporation's payout ratio last year? If it is to maintain the same payout ratio, what amount of dividends would it pay this year?
Payout ratio-last year %
Dividends paid this year
$
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