Assume sales are $1,100,cost of goods sold is $510,depreciation expense is $80,interest paid is $40,selling and general expenses are $230,dividends paid is $45,and the tax rate is 34 percent.What is the addition to retained earnings?

Question

Quizplus · Accepted Answer

Net income = (1 - 0.34)($1,100 - $510 - $230 - $80 - $40)= $158.40
Addition to retained earnings = $158.40 - $45 = $113.40

Assume Sales Are $1,100,cost of Goods Sold Is $510,depreciation Expense