You have recently been hired as a Finance Manager by FishKing Corp, a major multination...
50.1K
Verified Solution
Link Copied!
Question
Accounting
You have recently been hired as a Finance Manager by FishKing Corp, a major multination corporation, after graduating from Yorkville University with a BBA. You got this job as a result of being a very ethical student who never cheated on any mid term exam. The following is the most recent Statement of Comprehensive Income for FishKing Corp. Sales $47,000 Cost of Goods 31,300 Taxable Income 15,700 Taxes 5,495 Net Income $10,205 Dividends $2,500 Retained Earnings 7,705 The CFO asks you to put together a pro forma statement of comprehensive income for next year projecting a 15% increase in sales. The CFO instructs you to assume that costs will vary with sales and that the dividend payout ratio will remain constant. (i) What is the projected addition to retained earnings? Show all your work by completing a proforma Statement of Comprehensive Income. (ii) If the CFO wants to have $8,000 in addition to Retained Earnings next year, what should the Dividend Payout Ratio be?
You have recently been hired as a Finance Manager by FishKing Corp, a major multination corporation, after graduating from Yorkville University with a BBA. You got this job as a result of being a very ethical student who never cheated on any mid term exam.
The following is the most recent Statement of Comprehensive Income for FishKing Corp.
Sales $47,000
Cost of Goods 31,300
Taxable Income 15,700
Taxes 5,495
Net Income $10,205
Dividends $2,500
Retained Earnings 7,705
The CFO asks you to put together a pro forma statement of comprehensive income for next year projecting a 15% increase in sales. The CFO instructs you to assume that costs will vary with sales and that the dividend payout ratio will remain constant.
(i) What is the projected addition to retained earnings? Show all your work by completing a proforma Statement of Comprehensive Income.
(ii) If the CFO wants to have $8,000 in addition to Retained Earnings next year, what should the Dividend Payout Ratio be?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.