1. A company has forecasted net income to be $540,000. Net income was $425,000 in the prior year, when they also paid dividends of $80,000. What are forecasted dividends if the company wants to keep the payout ratio constant?
$80,000
$438,353
$101,647
$62,963
2. For the current year sales are $1,400,000, current assets are $101,524, and current liabilities are $85,265. If sales are forecasted to increase 14% next year, and all current assets and current liabilities vary proportionally with sales (i.e. they are spontaneous items), what is the forecasted amount of net working capital next year?
$16,259
$18,210
$18,373
$18,535