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CHAPTER 2: PROBLEM 2 Income Statement Sales $675,300 Costs $297,800 Depreciation Expense $45,100 EBIT Interest Expense $20,700 EBT Taxes @ 35% Net Income = Cash

CHAPTER 2: PROBLEM 2 Income Statement Sales $675,300 Costs $297,800 Depreciation Expense $45,100 EBIT Interest Expense $20,700 EBT Taxes @ 35% Net Income = Cash Dividends $62,000 Addition to Retained Earnings = Tax Rate = 35%

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