A Firm Has Net Income of $25,000 on Sales of $210,000.Sales

question 53

Multiple Choice

A firm has net income of $25,000 on sales of $210,000.Sales are expected to increase by 8 percent next year and the dividend payout ratio is 35 percent.The firm uses the percentage of sales approach when compiling pro forma statements.What amount is expected to be added to retained earnings next year?

• A)$14,300
• B)$15,400
• C)$15,686
• D)$17,550
• E)$21,600

---

Definitions:

Integrated Therapy

A therapeutic approach that combines multiple schools of psychological theory and technique to address the needs of the client.

Therapists

Professionals trained to diagnose and treat mental health issues, helping individuals cope with their feelings, thoughts, and behaviors.

Training

Training involves systematic activities aimed at enhancing the skill set or knowledge base of an individual or group for better performance.

Effectiveness

The ability of something to achieve the intended or expected outcome or result.