Question

Bradds, Inc., has sales of $589,000, costs of $278,000, depreciation expense of $30,000, interest expense of $25,000, a tax rate of 35 percent, and paid out $60,000 in cash dividends. What is the addition to retained earnings?

Answer 1

$106.400

Step-by-step explanation:

Icome statement

Sales of $589,000

Costs of -$278,000

Depreciation expense of -$30,000

Interest expense of -$25,000

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Total $ 256.000

Tax Rate 35% - $89.600

Net Income $ 166.400

Dividens Paid Out - $60.000

Addition to Retained Earnings $106.400