Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1) prepare a pro forma income statement for 2017.

1) Prepare a pro forma income statement for 2017. What is the expected net income?...

70.2K

Verified Solution

Question

Finance

image

1) Prepare a pro forma income statement for 2017. What is the expected net income?

2) What are the expected dividends for 2017?

Problem 1 A late penalty of 10% will apply to new answers. Intro Income statement for 2016 (in $) 2016 Sales 380,000 Operating costs 190,000 Depreciation 76,000 EBIT 114,000 Interest 25,000 Taxes (28%) 24,920 Net income 64,080 Dividends 38,448 Sales and depreciation are expected to increase by 30% in 2017, while costs (excluding depreciation) are expected to reach 45% of sales. Interest expenses, the average tax rate and the dividend payout ratio are expected to stay constant

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Q

sumple APPLY YOUR 17 1 Neuronal acti

Statistics
Q

You are considering the purchase of an investment that would pay you $55 per year for...

Finance
Q

Explain the basic operation of the MOSFET

Electrical Engineering
Q

The forward current across the depletion layer of a PN junction diode consists of electrons from Ν...

Electrical Engineering
Q

6 points What are the main factors that affect Earth s climate Select all that...

Biology
Q

Read More Two masses M 1 kg and M 2 kg are connected by a...

Physics
Q

Which of the following equations shows "twice a number is eighteen"?2n=182 = 182-n = 18

Basic Math
Q

In a recent year the following statistics for electrical energy generation in a certain country...

Statistics
Q

complete the Chapter 9 Performance Measurement Allocations. Any help appreciated, thank you For Chapter...

Accounting
Q

During its first year of operations, Chocolate Passion earned net credit sales of $390,000. Industry...

Accounting
Q

Refer to the following table. Maturity (years) 1 ...

Finance
Q

The answers for D. and E. are wrong. Consollatated Pasta...

Finance