Use the data from the following financial statements in the popup window, The co
ID: 2813516 • Letter: U
Question
Use the data from the following financial statements in the popup window, The company paid interest expense of $18,900
for 2017 and had an overall tax rate of 40% for 2017. Complete the statement of retained earnings for 2017, and determine the dividends paid last year
The distributed earnings is ??? <-----(PLEASE ANSWER THIS)
Partial Income Statement Year Ending 2017
Sales revenue
$349,900
Cost of goods sold
$141,900
Fixed costs
$42,800
Selling, general, and administrative expenses
$27,900
Depreciation
$46,200
Partial Balance Sheet 12/31/2016
ASSETS
LIABILITIES
Cash
$15,800
Notes payable
$14,000
Accounts receivable
$28,000
Accounts payable
$18,900
Inventories
$48,200
Long-term debt
$190,000
Fixed assets
$368,100
OWNERS' EQUITY
Accumulated depreciation (-)
$142,800
Retained earnings
Intangible assets
$81,800
Common stock
$131,900
Partial Balance Sheet 12/31/2017
ASSETS
LIABILITIES
Cash
$26,000
Notes payable
$12,000
Accounts receivable
$19,200
Accounts payable
$23,800
Inventories
$53,200
Long-term debt
$161,900
Fixed assets
$448,200
OWNERS' EQUITY
Accumulated depreciation (-)
Retained earnings
Intangible assets
$81,800
Common stock
$182,000
Partial Income Statement Year Ending 2017
Sales revenue
$349,900
Cost of goods sold
$141,900
Fixed costs
$42,800
Selling, general, and administrative expenses
$27,900
Depreciation
$46,200
Explanation / Answer
Assuming no dividends in 2017:
Retained earnings as of 2017=-Liabilities-Common Stock+Assets-Accumualted Depreciation 2016-Depreciation 2017=(-12000-23800-161900)-182000+(26000+19200+53200+448200+81800)-142800-46200=59700
Net income in 2017=(349900-141900-42800-27900-46200-18900)*(1-40%)=43320
Retained earnibgs 2016 comes out to be=44300
Dividend paid=44300+43320-59700=27920
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