contestada

Pharrell, inc., has sales of $601,000, costs of $257,000, depreciation expense of $63,000, interest expense of $30,000, and a tax rate of 35 percent. The firm paid out $44,000 in cash dividends. What is the addition to retained earnings?

Respuesta :

Tundexi

Answer:

$119,150

Explanation:

Addition to Retained Earnings shall be:

Particulars                 Amount$

Sales                          601,000

Less: Costs                257,000

EBDIT                         344,000

Less: Depreciation     63,000

EBIT                             281,000

Less: Interest               30,000

EBT                              251,000

Less: Tax at 35%         87,850

EAT                              163,150

Less: Cash Dividend   44,000

Retained Earnings     $119,150

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