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Austin Grocers recently reported the following 2016 income statement in millions of dollars): Sales $700 500 Operating costs

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Answer #1

Sales =700*1.35=945
Operating costs =500*1.35=675
EBIT =945-675=270
Interest =40
EBT =270-40=230
Taxes =230*40%=92
Net Income =230-92=138
Dividends =138*32/96=46
Addition to retained earnings =138-46=92

1.
=138.00

2.
=46/32-1
=43.750%

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