Calculate retention ratio given the following information: cash dividends paid = $6,000; sales = $100,000; cost of goods sold = $45,000; selling and administrative expenses = $25,000; interest expense = $6,000; tax rate = 30%.

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The retention ratio is calculated as the portion of net income that is retained in the company rather than distributed to shareholders as dividends. First, calculate the net income: Sales ($100,000) - Cost of Goods Sold ($45,000) - Selling and Administrative Expenses ($25,000) - Interest Expense ($6,000) = Operating Income ($24,000). Tax is 30%, so Tax Expense = $24,000 * 30% = $7,200. Net Income = Operating Income - Tax Expense = $24,000 - $7,200 = $16,800. Cash Dividends Paid = $6,000. Retained Earnings = Net Income - Dividends = $16,800 - $6,000 = $10,800. Retention Ratio = Retained Earnings / Net Income = $10,800 / $16,800 = 64.29%.

Calculate Retention Ratio Given the Following Information: Cash Dividends Paid