Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the accounting data below for the Gibson Co. for 2021. The firm pays corporate taxes at the flat 21% Corporate Rate. What is the

Consider the accounting data below for the Gibson Co. for 2021. The firm pays corporate taxes at the flat 21% Corporate Rate.


What is the Addition to Retained Earnings for 2021? [Present the answer rounded to the nearest dollar, e.g. 359462]

Income Statement Sales Costs Depreciation EBIT Interest Exp EBT Taxes (21%) Net Income Dividends Add to Ret Earn Cash Accont Rec Inventory Current Assets Net Fix Assets Total Assets 2021 4,650,000 2,175,500 550,000 107,500 850,000 Assets 2020 103,750 357,000 625,000 4,185,500 2021 98,250 415,250 572,500 4,762,500 Current Liab Total Liab Long-Term Debt 2,150,000 Common Stock Retained Earn Total Equity Liabilities & Equity Total Liab & EQ 2020 928,275 600,000 1,592,975 2021 984,500 625,000

Step by Step Solution

3.52 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

Step 13 Solution First calculate EBIT as follow EBITSalesCostdepreciation 4650000217550055000 192450... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Corporate Finance

Authors: Laurence Booth, Sean Cleary

3rd Edition

978-1118300763, 1118300769

More Books

Students also viewed these Accounting questions