Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement

Sales $47,600
Costs 35,600
Taxable income $12,000
Taxes (30%) 3,600
Net income $8,400
Dividends $2,000
Addition to retained earnings 6,400

The projected sales growth rate is 18 percent.

Required:
Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

1) d 2) d 3) c 4) d 5) a 6) c 7) a 8) b 9) a 10) a 11) d 12) c 13) c 14) d 15) a 16) a 17) d 18) c 19) c 20) c