Consider the following simplified financial statements for the Phillips Corporat
ID: 2676874 • Letter: C
Question
Consider the following simplified financial statements for the Phillips Corporation (assuming no income taxes):
Income Statement
Balance Sheet
Sales
$23,000
Assets
$15,800
Debt
$5,200
Costs
16,700
Equity
10,600
Net income
$6,300
Total
$15,800
Total
$15,800
Phillips has predicted a sales increase of 15 percent. It has predicted that every item on the balance sheet will increase by 15 percent as well.
Required:
Calculate the dividend paid.
$5,855
$4,875
$5,755
$5,555
$5,655
Consider the following simplified financial statements for the Phillips Corporation (assuming no income taxes):
Explanation / Answer
10600 beginning equity - 12190 equity (increased 15%) + 9750 net income (increased 15%) = 5655 answr: $5655