Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax

Question

3 years ago

6

Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax

rate of 35 percent. What is the net income for the firm? Suppose the company paid out #30,000 in cash dividends. What is the addition to retained earnings?

Business

1 answer:

Ad libitum [116K] · Answer 1 · 2022-03-01T15:27:47+03:00

Ad libitum [116K]3 years ago

4 0

Answer:

The Income Statement is-

Sales = $435,000

Costs = 216,000

Depreciation = 40,000

EBIT= $179,000

Interest = 21,000

EBT = $158,000

Taxes = 55,300

Net income = $102,700

I have done this question before in my "Money Management" Dual enrolled class.

:)