You are given the following information for Sookie’s Cookies Co.: sales = $51,90
ID: 2775834 • Letter: Y
Question
You are given the following information for Sookie’s Cookies Co.: sales = $51,900; costs = $38,900; addition to retained earnings = $2,950; dividends paid = $970; interest expense = $1,490; tax rate = 30 percent.(Enter your answer as directed, but do not round intermediate calculations.)
Calculate the depreciation expense.
You are given the following information for Sookie’s Cookies Co.: sales = $51,900; costs = $38,900; addition to retained earnings = $2,950; dividends paid = $970; interest expense = $1,490; tax rate = 30 percent.(Enter your answer as directed, but do not round intermediate calculations.)
Explanation / Answer
Sales - costs - interest expense - depreciation expense= income before the tax
=>
(51900 - 38900 - 1490 - depriciation expense) * (1-0.3) = 2950 + 970
=>
depriciation expense = 5910