using the percentage of sales method, forecasted retained earnings balance is eq

Question

using the percentage of sales method, forecasted retained earnings balance is equal to:
a) prior year retained earnings plus projected net income less projected dividends
b) the ratio of retained earnings to the sales for the current year multiplied by projected sales for the nxt year.
c) the retained earnings balance for the current year as no changes are made to this financing account when using the percentage of sale method.
d) the ratio of retained earnings to sale for the current year multiplied by projected sales for the next year, minus dividends paid.

Explanation / Answer

c) the retained earnings balance for the current year as no changes are made to this financing account when using the percentage of sale method.

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