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Gia, Inc., has sales of $679,000, costs of $341,000, depreciation expense of $85,000, interest expense of $52,500, and a tax rate of 22 percent. (Do not round intermediate calculations.) What is the net income for the firm? Suppose the company paid out $40,500 in cash dividends. What is the addition to retained earnings?

Respuesta :

mltn1980

Answer:

Net Income  $156,390  

Addition to Retained Earnings  $115,890

Explanation:

Income Statement  

Sales  $679,000  

Cost of goods sold -$341,000  

Depreciation Expenses -$85,000  

Gross Profit  $253,000  

Interest Expenses -$52,500  

Net Income BEFORE Taxes  $200,500  

Tax RATE 22%  -$44,110  

Net Income  $156,390  

Dividens -$40,500  

Retained Earnings $ 115,890  

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