7Fill in the missing values of the pro forma income statemen

7.Fill in the missing values of the pro forma income statement for 2016. Sales will incre by 25 percent and the dividend payouts will increase from 40 percent to 55 percent. Variable costs will be 5 percentage points less than the original percentage of sales 2016 Sales Variable Costs Fixed Costs Net Income Dividends 2015 1,000 500 160 340 136

Solution

Missing values for 2016

Sales (1000*125%)                      1250

Variable Cost (45%*1250)    562.5

Fixed Cost (Remain same) 160

      ______________       

Net Income     527.5

Dividend ( 527.5 * 55%) 290.125

                  

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