Chapter 2 Question 13 Input area: 13. X Sales Costs Addition to retained earnings Dividends paid Interest expense Tax rate $ 64,000 $ 30,700 $ 5,700 $ 1,980 $ 4,400 22% Using Income Statements [LO1] Given the following information for Bowie Pizza Co., calculate the depreciation expense: Sales = $64,000; Costs = $30,700; Addition to retained earnings = $5,700: Dividends paid = $1,980; Interest expense = $4,400; Tax rate = 22 percent. Output area: Income Statement Sales $ 64,000 Costs 30,700 Depreciation expense $ 21,221 EBIT $ 12,079 Interest expense 4,400 $ 7,679 Taxes 372 Net income $ 5,990 Dividends $ 1,980 Addition to retained earnings 5,700 HA