Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

nataro, incorporated, has sales of $675,000, costs of $337,000, depreciation expense of $81,000, interest expense of $50,500, a tax rate of 23 percent, and paid out $42,500 in cash dividends. what is the addition to retained earnings? (do not round intermediate calculations.)

Sagot :

The addition to retained earning will be equal to $116505.

The total sales of Nataro Incorporated = $675000

Costs = $337000, Depreciation expense = $81000, Interest expense = $50500, Dividends = $42500 and tax rate = 23%

Earnings before taxes =Total sales - (Costs + Depreciation expense + Interest expense)

Earnings before taxes = $675000 - ($337000 + $81000 + $50500)

Earnings before taxes = $675000 - $468500

Earnings before taxes = $206500

Net Income = Earnings before taxes(1 - tax rate)

Net income = $206500(1 - 0.23)

Net income = $159005

Now, the addition to retained earnings will be

Addition to retained earnings = Net Income - Dividends

Addition to retained earnings = $159005 - $42500

Addition to retained earnings = $116505

Learn more about Dividends at:

brainly.com/question/25845157

#SPJ4

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.