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 you projected balance sheet. Present the projected balance sheet.
Year +1
Operating income-----------------------------------------$58
Interest expense ---------------------------------------------(8)
Income before tax ------------------------------------------$50
Tax provision (20.0% effective tax rate)--------------(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)----------34
Can you please help me understand how to calculate for the dividends for the question above.