Use the following income statement to calculate 1) the divid…

Use the following income statement to calculate 1) the dividend payout ratio and 2) the retention ratio for Crown Heights Co.Income Statement (Crown Heights Co.):Sales = $62,000Costs = $47,850Taxable income = $14,150Taxes (25%) = $3,537.50Net income = $10,612.50Dividends = $4,700Addition to retained earnings = $5,912.50