Question $20$

Income Statement for Bearcat Hathaway, $2022$

Sales

Less Cost of Goods Sold

Gross Profit

$$7,529,268$

Less General & Administrative

Expenses

$$1,438,438$

Less Depreciation

$$2,656,922$

Earnings Before Interest and Taxes

$$3,433,908$

Less Interest Paid

Taxable Income $($or Earnings Before

$$924,283$

Taxes$)$

$$2,509,625$

Less Taxes $(21\%$ Tax Rate$)$

Net Income

$$527,021$

$$1,982,604$

Dividends

$$312,519$

If dividends paid are $$312,519,$ calculate the addition to retained earnings.

$$7,704,877$

$$1,670,085$

$$924,283$

$$9,687,481$

$$1,058,321$