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sammy [17]
3 years ago
5

Griffin's goat farm, inc., has sales of $680,000, costs of $342,000, depreciation expense of $86,000, interest expense of $53,00

0, a tax rate of 23 percent, and paid out $40,000 in cash dividends. What is the addition to retained earnings? (do not round intermediate calculations.)
Business
1 answer:
Oksana_A [137]3 years ago
8 0

Addition to Retained Earnings will be the amount will be Net Income as calculated using the above information:

Net income will be calculated as below:

Sales...........................................................$680000

Less: Cost of Sales.................................$342000

Less: Depreciation..................................$86000

Less: Interest Expense.........................$53000

Earnings Before Tax...............................$199000

Less [email protected] 23%.........................................$45770

Net Income..............................................$153230

Thus Income of $153230 will be added to Retained earnings and Cash dividend of $40000 will be reduced from therein.

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