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Chapter 4:In-Class Group Exercises SolutionsProblem 1: The most recent financial statements for Reply, Inc., are shown here:Income StatementBalance SheetSales$28,000 Assets$61,900 Debt$27,700 Costs19,000 Equity34,200 Taxable income$9,000 Total$61,900 Total$61,900 Taxes (40%)3,600 Net income$5,400 Assets and costs are proportional to sales. Debt and equity are NOTproportional to sales. A dividend of $1,500was paid, and the company wishes to maintain a constant payout ratio for next year. Next year’s sales areprojected to be $32,480.1.What is the projected sales’ growth rate?2.What is the projected net income?3.What is the dividend payout ratio?4.What is the projected dividend to be paid next year?5.What is the projected Add. To R.E. for next year?6.What is the projected Total Assets?7.What is the projected Total Debt?