Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer in dollars Problem 2-38 Income Statement (LG2-1) You have been given the following information for PattyCake's Athletic Wear Corp. for the year 2021:

please answer in dollars
image text in transcribed
Problem 2-38 Income Statement (LG2-1) You have been given the following information for PattyCake's Athletic Wear Corp. for the year 2021: a. Net sales $38,300,000. = b. Cost of goods sold = $22,100,000. c. Other operating expenses = $5,200,000. d. Addition to retained earnings = $1,198,500. e. Dividends paid to preferred and common stockholders = $1,913,000. f. Interest expense = $1,790,000. g. The firm's tax rate is percent. In 2022: h. Net sales are expected to increase by $9.30 million. i. Cost of goods sold is expected to be 60 percent of net sales. J. Depreciation and other operating expenses are expected to be the same as in 2021. k. Interest expense is expected to be $2,065,000. 1. The tax rate is expected to be 30 percent of EBT. m. Dividends paid to preferred and common stockholders will not change. Calculate the addition to retained earnings expected in 2022. (Enter your answer in dollars, not millions.) Addition to retained earnings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Governmental Accounting Auditing And Financial Reporting

Authors: Stephen J. Gauthier

1st Edition

0891252754, 978-0891252757

More Books

Students also viewed these Accounting questions