PLEASE show your work, thank you thank you thank you :] 1) PDQ Corp. has sales o

Question

PLEASE show your work, thank you thank you thank you :] 1) PDQ Corp. has sales of $3,000,000; the firm's cost of goods sold is $1,425,000; and its total operating expenses are $700,000. The firm's interest expense is $230,000, and the corporate tax rate is 40%. The firm paid dividends to preferred stockholders of $30,000, and the firm distributed $60,000 in dividend payments to common stockholders. What is PDQ's "Addition to Retained Earnings"? 2) Byron, Inc. has total current assets of $800,000; total current liabilities of $450,000; and long-term assets of $300,000. How much is the firm's Total Liabilities & Equity? 3) Byron, Inc. has total current assets of $800,000; total current liabilities of $450,000; long-term assets of $300,000; and long-term debt of $200,000. How much is the firm's total equity?

Explanation / Answer

Income Statement PQR Corp. Sales 30,00,000 Less cost of googs sold -14,25,000 Gross profit 15,75,000 Less operating expenses -7,00,000 Operating profit/ EBIT 8,75,000 Less Interest expenses -2,30,000 Earnings before taxes 6,45,000 Less Taxes (40%) -258000 Earnings after taxes 3,87,000 Less preferred dividend -3,00,000 Net income available to common stockholders 87,000 Less common dividend -60,000 Addition to Retained Earnings 27,000

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