Wellington Motors has sales of $840,000, costs of $400,000, depreciation expense of $95,000, interest expense of $60,000, and a tax rate of 26%. The firm paid out $90,000 in cash dividends. What is the addition to retained earnings?

Wellington Motors has sales of $840,000, costs of $400,000, depreciation expense of $95,000, interest expense of $60,000, and a tax rate of 26%. The firm paid out $90,000 in cash dividends. What is the addition to retained earnings?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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I need help with this general accounting question using the proper accounting approach.

Wellington Motors has sales of $840,000, costs of
$400,000, depreciation expense of $95,000, interest
expense of $60,000, and a tax rate of 26%. The firm paid
out $90,000 in cash dividends.
What is the addition to retained earnings?

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