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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

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DanielleElmas [232]

Answer:

$1,070

Explanation:

Calculation to determine the amount of applied overhead is:

Using this formula

Applied overhead = Total cost of WIP - Direct materials - Direct labor

Let plug in the formula

Applied overhead= $3,550 - $1,610 - $870

Applied overhead=$1,070

Therefore the amount of applied overhead is:$1,070

5 0
3 years ago
On December 31, 2016, Bart Inc. purchased a machine from Fell Corp. in exchange for a noninterest-bearing note requiring eight p
iragen [17]

Answer:

Bart Inc.

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= $114,240.

Explanation:

a) Data and Calculations:

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Appropriate present value of the annuity due = 5.712

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Check from an online financial calculator:

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I/Y (Interest per year)  11

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FV (Future Value)  0

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8 0
3 years ago
which of these is not true regarding the special function performed by the external auditing profession?
Vladimir79 [104]

<u>It serves the interests of client management rather than the public.</u>

The special function performed by the external auditing profession is the attestation to the fairness of the financial statements of clients.

"The special function helps ensure the reliability and integrity of the financial reporting system. The auditing profession exists to serve the users of an organization's financial statements. Auditors need to remember that they are serving the public interest and not necessarily the interests of client management."

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The rise of the car culture led to the spread of fast-food restaurants and drive-in movie theaters based on the choices from the question above. The "the spread of fast-food restaurants and drive-in movie theaters" is the most suitable answer<span>. Because only this sentence has the relation with the car culture.</span>
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3 years ago
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Lana71 [14]

Answer:

All of the above would use process costing.

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