EXLO Company Has Current Sales of $100,000 and Projected Annual

Multiple Choice

EXLO Company has current sales of $100,000 and projected annual sales growth of 5%, profit margins of 3%, and its dividend policy is to have a dividend payout of 15% of net income per year.Ignoring income taxes, the forecasted change to retained earnings for next year is:

A) $472.50
B) $2,677.50
C) $16,222.50
D) $91,927.50