Beach Front Industries Has Sales of $546,000, Costs of $295,000

question 69

Multiple Choice

Beach Front Industries has sales of $546,000, costs of $295,000, depreciation expense of $37,000, interest expense of $15,000, and a tax rate of 21 percent. The firm paid $59,000 in cash dividends. What is the addition to retained earnings?

• A) $98,210
• B) $81,700
• C) $95,200
• D) $103,460
• E) $121,680

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Definitions:

Sales

Revenue earned from selling goods or services over a certain period.

Percent Change

A measure that indicates the relative difference between an initial value and a final value, expressed as a percentage.

Wrong Amount

The incorrect calculation or entry of a figure in accounting records, transactions, or financial statements.

Account Balance

The amount of money present in a financial account at any given time.