You have been given the following information for PattyCakes Athletic Wear Corporation for the year:Net sales = $ 38,650,000. Cost of goods sold = $22,170,000. Other operating expenses = $5,900,000. Addition to retained earnings $1,205, 500. Dividends paid to preferred and common stockholders = $1,930, 500. Interest expense = $ 1,825,000. The firms tax rate is 30 percent.Next year:Net sales are expected to increase by $9.65 million.Cost of goods sold is expected to be 60 percent of net sales.Depreciation and other operating expenses are expected to be the same as in the last year.Interest expense is expected to be $2,100,000. The tax rate is expected to be 30 percent of EBT.Dividends paid to preferred and common stockholders will not change.Calculate the addition to retained earnings expected next year.
You have been given the following information for PattyCakes Athletic Wear Corporation for the year:Net sales = $ 38,650,000. Cost of goods sold = $22,170,000. Other operating expenses = $5,900,000. Addition to retained earnings $1,205, 500. Dividends paid to preferred and common stockholders = $1,930, 500. Interest expense = $ 1,825,000. The firms tax rate is 30 percent.Next year:Net sales are expected to increase by $9.65 million.Cost of goods sold is expected to be 60 percent of net sales.Depreciation and other operating expenses are expected to be the same as in the last year.Interest expense is expected to be $2,100,000. The tax rate is expected to be 30 percent of EBT.Dividends paid to preferred and common stockholders will not change.Calculate the addition to retained earnings expected next year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You have been given the following information for PattyCakes Athletic Wear Corporation for the year:Net sales = $
38,650,000. Cost of goods sold = $22,170,000. Other operating expenses = $5,900,000. Addition to retained
earnings $1,205, 500. Dividends paid to preferred and common stockholders = $1,930, 500. Interest expense = $
1,825,000. The firms tax rate is 30 percent.Next year: Net sales are expected to increase by $9.65 million.Cost of goods
sold is expected to be 60 percent of net sales. Depreciation and other operating expenses are expected to be the same
as in the last year. Interest expense is expected to be $2,100,000. The tax rate is expected to be 30 percent of
EBT.Dividends paid to preferred and common stockholders will not change.Calculate the addition to retained earnings
expected next year.
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