00:01
All right, so for this one, first thing we're going to do is calculate the net income for 2021.
00:04
That is going to be my $2 million.
00:07
Okay.
00:09
Two million times our profit margin, which is 0 .05.
00:15
That comes out to $100 ,000.
00:17
Okay, calculate the attain earnings for 2021.
00:21
Our retention ratio is 4%.
00:23
So we're going to take our profit margin, multiply that by 0 .04.
00:29
And it comes out to 4 ,000.
00:30
Terming the increase in assets require for a given increase in sales.
00:36
The asset increase per dollar in sales has to be the 50 .55 for every $1 increase...