Kahlan Opinion Surveys had beginning retained earnings of $24.600.During the year, the company reported sales of $105,700, costs of $78,300, depreciation of $9.000, dividends of $1,200, and interest paid of $$635.The tax rate is 30 percent.What is the retained earnings balance at the end of the year?

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Retained earnings = Beginning retained earnings + Net income - DividendsNet income = Sales - Costs - Depreciation - Interest paid + Tax savingsTax savings = Tax rate * Taxable incomeTaxable income = Sales - Costs - Depreciation - Interest paidTax savings = 0.30 * (105,700 - 78,300 - 9,000 - 635) = 6,939Net income = 105,700 - 78,300 - 9,000 - 635 + 6,939 = 24,804Retained earnings = 24,600 + 24,804 - 1,200 = 48,204

Kahlan Opinion Surveys Had Beginning Retained Earnings of $24 $$635The Tax Rate Is 30 Percent