Polaris Industries is forecasting its financial statements for Year 6.

Polaris Industries is forecasting its financial statements for Year 6. Selected financial information for Year 5 is provided in the table. What is Retained Earnings for Year 6?

Selected Financial Information
Polaris Industries Inc. ($000s)
Year 5 Ratios
(to Sales) Forecast
Year 6
Revenue $1,908,459 $1,803,494
COGS 1,454,374 0.762067
SG&A 213,114 0.111668
Dep. Exp. 28,632 30,084
EBIT 212,339
Int. Exp. 4,713 2,117
EBT 207,626
Provision for Income taxes 64,348 31%*
Net Income $143,278
Dividends $700
Retained Earnings $369,240
*Tax rate is a proportion of Earnings before Taxes.
A) $ 503,447
B) $ 504,147
C) $ 534,137
D) $ 534,837
E) $ 607,556

ANSWER

A