A company with a target D/E ratio of 1.4 reported earnings of $240,000 for the period just ended. If the company uses a residual dividend policy and declared total dividends of $48,000, what is its addition to retained earnings?

A company with 600,000 shares outstanding has declared an annual dividend of $11 per share. For the period just ended, earnings per share were $13.75. If the company uses a residual dividend policy and plans to borrow $300,000 in new debt, what amount is planned for total capital expenditures?