Kizspy | Question: 20
(Choose 1 answer)
The table below is financial statement of Velapure Inc.
Velapure Inc. maintains a constant dividend payout ratio. What is their retention ratio?
A. 29%
Β. 39%
C. 49%
D. 59%
Income Statement
Sales
$8,500
COGS
$7,210$400
Depreciation
EBIT
$890
Interest paid
$40
Taxable Income
$850
Taxes
$310
Net Income
$540
Dividend
$330
FUOVERF
Additional to retained earnings
$210
Balance Sheet
Cash
$1,700$1,020
Accounts payable Long-term debt
$2,175
Accounts receivable
$525
Inventory
$2,480$5,200
Common stock
$3,000
Total
Retained earnings
$1,700
Net fixed assets
$2.200
Total Assets
$7,400
Total liabilities & equity
$7,400
