Polaris Industries Is Forecasting Its Financial Statements for Year 6

question 37

Multiple Choice

Polaris Industries is forecasting its financial statements for Year 6. Selected financial information for Year 5 is provided in the table. What is Retained Earnings for Year 6? Selected Financial Information
Polaris Industries Inc. ($000s)
$$\begin{array} { | c | c | c | c | } \hline & \begin{array} { c } \text { Year 5 }\end{array} & \begin{array} { c } \text { Ratios } \\\text { (to Sales) }\end{array} & \begin{array} { c } \text { Forecast } \\\text { Year 6 }\end{array} \\\hline \text { Revenue } & \$ 1,908,459 & & \$ 1,803,494 \\\hline \text { COGS } & 1,454,374 & 0.762067 & \\\hline \text { SG\&A } & 213,114 & 0.111668 & \\\hline \text { Dep. Exp. } & 28,632 & & 30,084 \\\hline \text { EBIT } & 212,339 & & \\\hline \text { Int. Exp. } & 4,713 & & 2,117 \\\hline \text { EBT } & 207,626 & & \\\hline \begin{array} { c } \text { Provision for Income } \\\text { taxes }\end{array} & 64,348 & 31 \% * & \\\hline \text { Net Income } & \$ 143,278 & & \\\hline \text { Dividends } & & & \$ 700 \\\hline \text { Retained Earnings } & \$ 369,240 & & \\\hline\end{array}$$ *Tax rate is a proportion of Earnings before Taxes.

• A)$ 503,447
• B)$ 504,147
• C)$ 534,137
• D)$ 534,837
• E)$ 607,556

Comprehend the equation of exchange and its components (MV=PQ).

Analyze the relationship between money supply, inflation, and economic stability.

Explain the concepts of velocity of money and how it impacts the economy.

Discern the differences between monetarist and classical viewpoints on economic policy and stabilization.

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Definitions:

Failure Analysis

The systematic investigation of a process, product, or system failure to identify the causes and suggest improvements.

Justification Reports

Documents that provide reasons and evidence to support particular decisions or proposals.

Feasibility Reports

Documents that evaluate the practicality and viability of a proposed project or idea.

Due Diligence

A comprehensive appraisal or investigation undertaken to evaluate the risks and merits before entering into an agreement or transaction.