Max Farm, Inc., has sales of $870,000, costs of $530,000, depreciation expense of $68,000, interest expense of $21,000, a tax rate of 21 percent, and paid out $31,000 in cash dividends. What is the addition to retained earnings? $8,100 $200 O $160,100 $167,290

Max Farm, Inc., has sales of $870,000, costs of $530,000, depreciation expense of $68,000, interest expense of $21,000, a tax rate of 21 percent, and paid out $31,000 in cash dividends. What is the addition to retained earnings? $8,100 $200 O $160,100 $167,290

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 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

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Question

Max Farm, Inc., has sales of $870,000, costs of $530,000, depreciation expense of $68,000,
interest expense of $21,000, a tax rate of 21 percent, and paid out $31,000 in cash dividends.
What is the addition to retained earnings?
$8,100
$200
$160,100
O $167,290

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