Griffin's Goat Farm, Inc., has sales of $682,000, costs of $344,000, depreciation expense of $88,000, interest...

Question

Question

Griffin's Goat Farm, Inc., has sales of $682,000, costs of $344,000, depreciation expense of $88,000, interest...

Griffin's Goat Farm, Inc., has sales of $682,000, costs of $344,000, depreciation expense of $88,000, interest expense of $54,000, a tax rate of 25 percent, and paid out $39,000 in cash dividends.

What is the addition to retained earnings?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Calculation of addition to retained earnings:

Net income before tax= sales-cost-depreciation-interest

Net income before tax= 682000-344000-88000-54000= 196000

Net income after tax= 196000*(1-0.25)= 196000*0.75= 147000

Addition to retained earning= net income after tax- dividend

Addition to retained earning= 147000-39000= 108000

Add a comment

Answer 2

Similar Homework Help Questions

Griffin's Goat Farm, Inc., has sales of $682,000, costs of $344,000, depreciation expense of $88,000, interest...

Griffin's Goat Farm, Inc., has sales of $682,000, costs of $344,000, depreciation expense of $88,000, interest expense of $54,000, a tax rate of 25 percent, and paid out $39,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.)
Griffin's Goat Farm, Inc., has sales of $677,000, costs of $339,000, depreciation expense of $83,000, interest...

Griffin's Goat Farm, Inc., has sales of $677,000, costs of $339,000, depreciation expense of $83,000, interest expense of $51,500, a tax rate of 25 percent, and paid out $41,500 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings
Griffin's Goat Farm, Inc., has sales of $672,000, costs of $334,000, depreciation expense of $78,000, interest...

Griffin's Goat Farm, Inc., has sales of $672,000, costs of $334,000, depreciation expense of $78,000, interest expense of $49,000, a tax rate of 25 percent, and paid out $44,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings

Griffin's Goat Farm, Inc., has sales of $668,000, costs of $330,000, depreciation expense of $74,000, interest...

Griffin's Goat Farm, Inc., has sales of $668,000, costs of $330,000, depreciation expense of $74,000, interest expense of $47,000, a tax rate of 21 percent, and paid out $46,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.) Pompeii, Inc., has sales of $56,000, costs of $25,400, depreciation expense of $2,850, and interest expense of $2,600. If the tax rate is 25 percent, what is the operating cash flow, or OCF? (Do not round...
Griffin's Goat Farm, Inc., has sales of $679,000, costs of $341,000, depreciation expense of $85,000, interest...

Griffin's Goat Farm, Inc., has sales of $679,000, costs of $341,000, depreciation expense of $85,000, interest expense of $52,500, a tax rate of 22 percent, and paid out $40,500 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.)
Griffin's Goat Farm, Inc., has sales of $676,000, costs of $338,000, depreciation expense of $82,000, interest...

Griffin's Goat Farm, Inc., has sales of $676,000, costs of $338,000, depreciation expense of $82,000, interest expense of $51,000, a tax rate of 24 percent, and paid out $42,000 in cash dividends. 10 points What is the addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings d earnings eBook

Problem 2-3 Dividends and Retained Earnings [LO1] Griffin's Goat Farm, Inc., has sales of $672,000, costs...

Problem 2-3 Dividends and Retained Earnings [LO1] Griffin's Goat Farm, Inc., has sales of $672,000, costs of $334,000, depreciation expense of $78,000, interest expense of $49,000, a tax rate of 25 percent, and paid out $44,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings This is a numeric cell, so please enter numbers only.
Griffin's Goat Farm, Inc., has sales of $672,000, costs of $334,000, depreciation expense of $78,000, interest...

Griffin's Goat Farm, Inc., has sales of $672,000, costs of $334,000, depreciation expense of $78,000, interest expense of $49,000, and a tax rate of 25 percent. What is the net income for this firm? (Do not round intermediate calculations.)
Griffin's Goat Farm, Inc., has sales of $677,000, costs of $339,000, depreciation expense of $83,000, interest...

Griffin's Goat Farm, Inc., has sales of $677,000, costs of $339,000, depreciation expense of $83,000, interest expense of $51,500, and a tax rate of 25 percent. What is the net income for this firm? (Do not round intermediate calculations.)

Griffin's Goat Farm, Inc., has sales of $644,000, costs of $285,000, depreciation expense of $53,000, interest...

Griffin's Goat Farm, Inc., has sales of $644,000, costs of $285,000, depreciation expense of $53,000, interest expense of $20,000, and a tax rate of 21 percent. What is the net income for this firm?

Griffin's Goat Farm, Inc., has sales of $682,000, costs of $344,000, depreciation expense of $88,000, interest...

Homework Answers

Add Answer to:
Griffin's Goat Farm, Inc., has sales of $682,000, costs of $344,000, depreciation expense of $88,000, interest...

Post as a guest

Earn Coins