Nick\'s Exterminators, Inc., has sales of $694,000, costs of $215,000, depreciat

Question

Nick's Exterminators, Inc., has sales of $694,000, costs of $215,000, depreciation expense of $53,000, interest expense of $33,000, and a tax rate of 35 percent. If the firm paid out $74,000 in cash dividends. What is the addition to retained earnings?

Multiple Choice

$181,450

$234,450

$163,305

$267,450

$214,450

Nick's Exterminators, Inc., has sales of $694,000, costs of $215,000, depreciation expense of $53,000, interest expense of $33,000, and a tax rate of 35 percent. If the firm paid out $74,000 in cash dividends. What is the addition to retained earnings?

Explanation / Answer

Answer :- The correct answer is (a) that is 181450

Income Statement Sales 694000 Less :- Costs 215000 Less :- Dep Exp 53000 EBIT 426000 Less:- Interest 33000 EBT 393000 Less :- Tax 137550 Earning After Tax 255450 Less :- Dividend Paid 74000 Retained Earnings 181450

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