1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
CaHeK987 [17]
3 years ago
13

Beach Front Industries has sales of $589000, costs of $280000, depreciation expense of $37000, interest expense of $17000, and a

tax rate of 32 percent. The firm paid $59000 in cash dividends. What is the addition to retained earnings?
A. $76,320B. $81,700C. $95,200D. $121,680E. $103,460
Business
1 answer:
sladkih [1.3K]3 years ago
5 0

Answer:

addition to retained earnings is $114400

Explanation:

Given data

sales = $589000

costs = $280000

depreciation expense = $37000

interest expense = $17000

tax rate = 32 percent

cash dividends =  $59000

to find out

the addition to retained earnings

solution

first we calculate the profit before tax that is

profit before tax = sale - cost - depreciation - interest

profit before tax =  589000 - 280000 t - 37000 - 17000

profit before tax =  589000 - 280000  - 37000 - 17000

profit before tax is $255000

now calculate profit after tax that is

profit after tax = profit before tax × (1- tax rate )

profit after tax =  255000 × (1- 32% )

profit after tax is $173400

so

addition to retained earnings is

= profit after tax - dividend

addition to retained earnings = 173400 - 59000

addition to retained earnings is $114400

You might be interested in
Should a company alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the compa
nalin [4]
NO. The company should not <span>alter its marketing campaigns to reflect biases that might be prevalent in various countries in which the company does business. Especially if the alteration made is against company polity and ethics. 

The marketing campaigns must represent the authentic stance of the company. It should be presented in such a way that it gives out positive responses from clients and potential clients regardless of market sector.


</span>
8 0
3 years ago
I WILL MARK THE BRAINLIEST HELP ME PLEASE
Harman [31]

Answer:

It's D im guessing

Explanation:

6 0
3 years ago
Read 2 more answers
"the telling style of leadership has a ________ feature."
Shkiper50 [21]
Hi Laight6069, 

The telling style of leadership has a <span>high-task, low-relationship feature.</span>
5 0
3 years ago
On March 1, a business paid $3,840 for a twelve-month liability insurance policy. On April 1, the business entered into a two-ye
Helen [10]

Answer:

a. Insurance expense for the month of march

= ($3,840 / 12 months) * 1 month

= $320 per month

b. Balance in prepaid insurance as of March 31

= ($3,840 / 12 months) *11 months remaining

= $3,520

c. Equipment rent expense for the month of April

= ($23,160 / 24 months) * 1 month

= $965

d. Balance in prepaid equipment rental as of April 30

= Nil ($0) as it is not mentioned that payment has been made, it is only mentioned that two year rental contract has been entered into.

4 0
3 years ago
The treasurer of a major U.S. firm has $29 million to invest for three months. The interest rate in the United States is .29 per
7nadin3 [17]

Answer:

Check the following calculations.

Explanation:

The U.S. firm has $29 million

Investment is for three months

And the interest rate in the United States is .29 percent per month

The value of the investment if the money is invested in U.S

= $29 million *(1+ 0.29%) ^3

= $29.2530 million

The interest rate in Great Britain is .33 percent per month.

The spot exchange rate is £.629

And the three-month forward rate is £.632.

The value of the investment if the money is invested in Great Britain

Value after spot exchange = $29 million *(£.629/$1) = £ 18.241 million

Value after three months interest earning = £ 18.241*(1+0.33%) ^3

= £ 18.4222 million

Exchanging again in US $ after 3 months

= £ 18.4222 *($1/£ .632) = $29.1490 million

Therefore the value of the investment if the money is invested in Great Britain is $29.1490 million.

The value of investment will be more if the money is invested in U.S.

6 0
3 years ago
Other questions:
  • An independent group wants to determine if the consumption of gasoline has increased due to changes in price. the group randomly
    5·1 answer
  • Is a Polo shirt proper for a business job?
    6·1 answer
  • Janice is trying to determine what type of training should be developed for her employee Greg. Janice knows that Greg is a hands
    5·1 answer
  • The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs th
    15·1 answer
  • The balance in Discount on Bonds Payable
    15·1 answer
  • which of the following is the guiding economic philosophy of the free enterprise system? socialism communism marxism capitalism
    14·2 answers
  • Why is it important to perform multiple trials in an experiment -- meaning that you include many test individuals or samples?
    13·1 answer
  • Gerken Company concluded at the beginning of 2021 that the company's ownership interest in DillCo had increased to the point tha
    12·1 answer
  • I have a brainlest for anybody if the can tell me who won the wwe champoinship in 1996
    12·1 answer
  • What is the most significant reason for follwing an independent bussiness career by an entrepreneur​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!