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

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Definitions:

Multiple Comparison Methods

Statistical procedures used to evaluate and compare the differences among group means in a study involving more than two groups.

Population Means

The average value of a characteristic or measurement taken from every member of a population.

GMAT Scores

Standardized test scores used primarily for admissions decisions into graduate business programs, assessing quantitative, verbal, analytical writing, and integrated reasoning skills.

ANOVA Table

A statistical table used in analysis of variance that summarizes the sources of variance in a data set to help determine if there are significant differences.