196k views
4 votes
Frye, Inc., has Sales of $625,000, Costs of Goods Sold of $260,000, Depreciation Expense of $79,000, Interest Expense of $43,000, and an average tax rate of 35 percent. If the firm's beginning balance in Retained Earnings for the year was $200,000 and paid out $60,000 in cash dividends, how much is the firm's ending balance in Retained Earnings for the year?

User RaGin RAj
by
5.9k points

1 Answer

4 votes

Answer:

Ending RE : 297,950

Step-by-step explanation:

Sales 625,000

COGS (260,000)

Dep Expense (79,000)

Interest Exp (43,000)

EBT 243,000

Tax Expense (85,050)

Net Income 157,950‬

beginning retained earning 200,000

+ net income 157,950

- dividends (60,000)

ending RE 297,950

User Yttrium
by
6.2k points