Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

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

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.