Calculate retention ratio given the following information: cash dividends paid = $19,950; sales = $250,000; cost of goods sold = $100,000; selling and administrative expenses = $50,000; interest expense = $5,000; tax rate= 30%.

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The retention ratio is calculated as the portion of net income retained in the company rather than paid out as dividends. First, calculate net income: Sales ($250,000) - Cost of Goods Sold ($100,000) - Selling and Administrative Expenses ($50,000) - Interest Expense ($5,000) = Earnings Before Tax ($95,000). Tax is 30% of EBT, so Tax = $95,000 * 30% = $28,500. Net Income = EBT - Tax = $95,000 - $28,500 = $66,500. Cash Dividends Paid = $19,950. Retained Earnings = Net Income - Dividends = $66,500 - $19,950 = $46,550. Retention Ratio = Retained Earnings / Net Income = $46,550 / $66,500 = 0.7 or 70%.

Calculate Retention Ratio Given the Following Information: Cash Dividends Paid