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Papa Roach Exterminators, Inc., has sales of $729,000, costs of $335,000, depreciation expense of $38,000, interest...

Papa Roach Exterminators, Inc., has sales of $729,000, costs of $335,000, depreciation expense of $38,000, interest expense of $21,000, and a tax rate of 35 percent. If the firm paid out $74,000 in cash dividends. What is the addition to retained earnings

  • $181,750

  • $143,750

  • $202,750

  • $164,750

  • $129,375

0 0
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Answer #1
Sales 729,000
Less:costs 335,000
Less:depreciation expense 38,000
EBIT 356,000
Less:interest expense 21000
EBT 335,000
Less:taxes(335,000*35%) 117250
Net income 217750
Less:Dividends 74000
Addition to retained earnings $143750
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