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A company has sales of 10,644, COGS of 1,779, depreciation expense of 972, interest expense of...

A company has sales of 10,644, COGS of 1,779, depreciation expense of 972, interest expense of 996, tax rate of 29 percent, and dividends of 359. What is the company's addition to retained earnings?

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Answer #1
Calculation of additions to retained earnings
Particulars Amount
Sales (A) 10644
COGS (B) 1779
Depreciaiton Expense (C ) 972
Earnings Before Interest and Tax (D = A-B-C) 7893
Interest Expense (E ) 996
Earnings Before Tax (F = D-E) 6897
Taxes (G = F*29%) 2000.13
Net Income (H = F-G) 4896.87
Dividends paid (I) 359
Additions to retained earnings (J = H-I) 4537.87
Therefore, Company's additions to retained earnings is $4,537.87
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