Any help? Papa Roach Exterminators, Inc., has sales of $659,000, costs of $275,0

ID: 2613532 • Letter: A

Question

Any help? Papa Roach Exterminators, Inc., has sales of $659,000, costs of $275,000, depreciation expense of $43,000, interest expense of $34,000, and a tax rate of 40 percent, If the firm paid out $72,000 in cash dividends, what is the addition to retained earnings? Earnhardt Driving School's 2008 balance sheet showed net fixed assets of $4.5 million, and the 2009 balance sheet showed net fixed assets of $6.1 million. The company's 2009 income statement showed a depreciation expense of $775,000. What was net capital spending for 2009? The 2008 balance sheet of Saddle Creek, Inc., showed current assets of $1,460 and current liabilities of $770. The 2009 balance sheet showed current assets of $1,560 and current liabilities of $920. What was the company's 2009 change in net working capital, or NWC? The 2008 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.35 million, and the 2009 balance sheet showed long-term debt of $4.3 million. The 2009 income statement showed an interest expense of $180,000. What was the firm's cash flow to creditors during 'l10

Explanation / Answer

Net income= 659,000-275,000-43,000-34,000-(.4x242000)

=$210200

Sales

659000

Costs

(275000)

Operating profit( Sales - costs)

384000

Depreciation

(43000)

Earnings before int & tax

341000

Interest Exp

(34000)

Profit before tax

242000

Tax @ 40% on $242000

(96800)

Profit after tax (PAT)

210200

Dividends paid (Given)

(72000)

Addition to retained earnings

138200

(PAT - Dividends)