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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
10.7Â Â Â Â Â DIVIDENDS AS A FLEXIBLE FINANCIAL ACCOUNT. The following data for Schwartz Company represent a summary of your first-iteration forecast amounts for Year +1. Schwartz uses dividends as a flexible financial account. Compute the amount of dividends you can assume that Schwartz will pay in order to balance your projected bal- ance sheet. Present the projected balance sheet.
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Operating Income                                                                                  $ 58
Interest Expense                                                                               (8)
Income before Tax                                                                         $ 50
Tax Provision (20.0 percent effective tax rate)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (10)
Net Income                                                                                    $ 40
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Total Assets                                                                                   $200
Accrued Liabilities                                                                         $ 43
Long-Term Debt                                                                            $ 80
Common Stock, at par                                                                   $ 20
Retained Earnings (at the beginning of Year +1)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $ 34
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