Question

Corel Scantron Performa Cuman School Wo. SS SSCC Two-Year New Tab HMS 2017-18 d 2018 Revised Alb Hele You manufacture and sell cowbells. You expect to generate revenues of $1,900 next year. Given that your profit margin is 7 percent and that yo payout 41 percent of net income as a dividend, what is the projected increase in your retained earnings? Multiple Choice $99.75 0 0 $78.47 0 $133.00 < Prey 31 of 36 !!! Next >

Answer 1

Revenue Profit margin (7% of revenue) Dividend 41% Increase in retained earnings $ $ $ $ 1,900 133.00 ($ 1,900 * 7%) 54.53 ($ 133 * 41%) 78.47 ($ 133.00 - $ 54.53) Answer is option third - $ 78.47