The most recent financial statements for GPS, Inc., are shown here:

Income Statement                  Balance Sheet

Sales $          34,000              Assets$57,700                        Debt $22,500          

Costs            24,500                                                              Equity$35,200      

Taxable income$9,500          Total$57,700 Total$57,700          

                                                                       

Taxes (40%) 3,800                                                                                               

Net income $5,700   

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,000 was paid, and the company wishes to maintain a constant payout ratio. Next yearAc€?cs sales are projected to be $37,400.

 

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Status NEW Posted 03 Aug 2017 02:08 PM My Price 6.00

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