Cadbury Plc Is a Global Confectionery Company *Tax Rate Is a Proportion of Earnings Before Taxes

question 44

Multiple Choice

Cadbury plc is a global confectionery company. Cadbury is forecasting its financial statements for Year 9. Selected financial information for Years 7 and 8 is provided in the table. What is Retained Earnings for Year 9? Selected Financial Information
Cadbury plc (£ millions)
$$\begin{array} { | c | c | c | c | } \hline & \text { Year 8 } & \begin{array} { c } \text { Ratios } \\\text { (to Sales) }\end{array} & \text { Forecast } \\\hline \text { Revenue } & £ 5,802 & & £ 6,962 \\\hline \text { COGS } & 3,300 & 0.568769 & \\\hline \text { SG\&A } & 1,490 & 0.256808 & \\\hline \text { Dep. Exp. } & 196 & & 312 \\\hline \text { EBIT } & 816 & & \\\hline \text { Int. Exp. } & 153 & & 77 \\\hline \text { EBT } & 663 & & \\\hline \begin{array} { c } \text { Provision for Income } \\\text { taxes }\end{array} & 30 & 0.045 ^ { * } & \\\hline \text { Net Income } & £ 633 & & \\\hline \text { Dividends } & & & £ 315 \\\hline \text { Retained Earnings } & £ 2,498 & & \\\hline \text { Shareholder's Equity } & £ 3,534 & & \\\hline\end{array}$$ *Tax rate is a proportion of Earnings before Taxes.

• A)£2,917
• B)£3,268
• C)£4,007
• D)£5,307
• E)£5,885

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