contestada

Papa Roach Exterminators, Inc., has sales of $699,000, costs of $385,000, depreciation expense of $47,000, interest expense of $25,000, and a tax rate of 30 percent. If the firm paid out $80,000 in cash dividends. What is the addition to retained earnings?

Respuesta :

Karabo99

Answer:

The addition to retainer earnings is $ 169400.

Explanation:

note: $ 699000 - $385000 - $47000 - $ 25000  = $ 242000

addtion to the retainer earnings = $ 699000 - $385000 - $47000 - $ 25000 - 30%*242000

                                                      = $ 169400

Therefore, the addition to retainer earnings is $ 169400.

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