Use the data from the following financial statements shown below. The company pa

Question

Use the data from the following financial statements shown below. The company paid interest expense of $17,600 for 2014 and had an overall tax rate of 40% for 2014. Complete the statement of retained earnings for? 2014, and determine the dividends paid last year.

Intangible Assets: $81,800 Common Stock: $132,000

Partial Income Statement Year Ending 2014 Sales revenue Cost of goods sold Fixed costs Selling, general, and administrative expenses Depreciation $349,900 $141,900 $43,200 $27,800 Save Accounting Table.. Copy to Clipboard... Partial Balance Sheet 12/31/2013 ASSETS Cash Accounts receivable Inventories ixed assetS Accumulated depreciation (-) LIABILITIES $16,200 Notes payable $27,900 Accounts payable $48,200 Long-term debt $14,000 $19,100 $190,000 $368,100 OWNERS' EQUITY $140,000 Retained earnings

Explanation / Answer

Balance sheet 31/12/2013 ASSETS LIABILITIES Cash $16,200.00 Notes payable $14,000.00 Accounts receivables $27,900.00 Accounts Payable $19,100.00 Inventories $48,200.00 Long term debt $190,000.00 Fixed assets $368,100.00 OWNER's EQUITY $179,100.00 Accumulated depreciation -$140,000.00 Retained Earnings $47,100.00 Intangible assets $81,800.00 Common stock $132,000.00 Total Assets $402,200.00 Total Equity and Liabilities $402,200.00 Balance sheet 31/12/2014 ASSETS LIABILITIES Cash $26,100.00 Notes payable $14,000.00 Accounts receivables $19,200.00 Accounts Payable $19,100.00 Inventories $53,100.00 Long term debt $190,000.00 Fixed assets $447,800.00 OWNER's EQUITY $219,000.00 Accumulated depreciation -$186,200.00 Retained Earnings $37,200.00 Intangible assets $82,100.00 Common stock $181,800.00 Total Assets $442,100.00 Total Equity and Liabilities $442,100.00 Income statement for 2014 Sales revenue $349,900.00 Less : Cost of goods sold $141,900.00 Gross Margin $208,000.00 Less : Fixed cost $43,200.00 Less : Selling,general and admin.exp. $27,800.00 Less : Depreciation $46,200.00 Less : Interest Expense $17,600.00 Profit before tax $73,200.00 Less : Tax @ 40% $29,280.00 Net Income $43,920.00 Determination of dividend paid for 2014 Retained earnings balance in 2013 $47,100.00 Add : Net Income for 2014 $43,920.00 Less : Retained Earnings balance in 2014 $37,200.00 Dividend paid in 2014 $53,820.00 Statement of retained earnings for 2014 Beginning balance $47,100.00 Add : Net Income $43,920.00 Less : Dividend paid $53,820.00 Retained Earnings balance 2014 $37,200.00

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