Business, 15.04.2020 22:24 ultimatesaiyan

Pro Forma Income Statement Austin Grocers recently reported the following 2018 income statement (in millions of dollars): For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 70% of sales. Austin’s tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Austin’s projected 2019 net income? 700* 1.25 = 875 875.70 = 612.5 EBIT = 875-612.5 = 262.5 EBT = 262.5 - 40 = 222.5 Net income = 222.5 - (222.5 .6) Net income = 133.5 million What is the expected growth rate in Austin’s dividends? b.39.06%

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Pro Forma Income Statement Austin Grocers recently reported the following 2018 income statement (in...

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