Thompson

Thompson, Inc. has a 40% dividend payout ratio. It’s projections for next year include sales of $6 million and a return on sales of 12%. How much should be available in retained earnings to reduce the external funding requirement?
$240,000
$288,000
$360,000
$432,000
$720,000

If sales are evenly distributed throughout the year, what is next year’s projected ending accounts receivable balance?
$1,665,000
$138,750
$1,110,000
none of the above