Billy’s Exterminators, Inc., has sales of $598,000, costs of $296,000, depreciation expense of $48,000, interest expense of $34,000, a tax rate of 35 percent, and paid out $69,000 in cash dividends. Solution What is the addition to retained earnings? .

1. Billy’s Exterminators, Inc., has sales of $598,000, costs of $296,000, depreciation expense of
$48,000, interest expense of $34,000, a tax rate of 35 percent, and paid out $69,000 in cash
dividends.
Solution
What is the addition to retained earnings?
sales 598000
Less costs of goods sold 296000
Less depreciation expens 48000
Less interest expense 34000
PBIT 220000
Less Tax 35% 77000
PAT 143000
Less Dividend 69000
addition to retained earnings 74000