A Firm Has Projected Sales of $328,000,costs of Goods Sold

question 5

Multiple Choice

A firm has projected sales of $328,000,costs of goods sold equal to 68% of sales,interest of $18,500,a tax rate of 35%,and a dividend payout ratio of 60%.What will be the addition to retained earnings?

• A) $16,667
• B) $22,480
• C) $24,002
• D) $19,531

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Definitions:

Noncash Transfers

A mode of transferring wealth or benefits without the exchange of physical cash, often utilized in government assistance programs.

Income Distribution

The way in which total income is shared among individuals or groups within an economy, impacting economic equality.

Labor Market Discrimination

The unfair treatment of workers based on race, gender, age, or other non-job-related characteristics, affecting hiring, wages, and promotion.

Nation's GDP

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.