AV Sales has net revenue of $513,000 and costs of $406,800.The depreciation expense is $43,800,interest paid is $11,200, and dividends for the year are$4,500.The tax rate is 33 percent.What is the addition to retained earnings?

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To find the addition to retained earnings, first calculate the taxable income: $513,000 (revenue) - $406,800 (costs) - $43,800 (depreciation) - $11,200 (interest) = $51,200. Then, calculate taxes: $51,200 * 33% = $16,896. Net income is $51,200 - $16,896 = $34,304. Finally, subtract dividends: $34,304 - $4,500 = $29,804.

AV Sales Has Net Revenue of $513,000 and Costs of $406,800.The