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The following information for Kellygirl's Athletic Wear Corp. for the year 2008: a. Net sales = $22,600,000. b. Cost of goods sold = $14,200,000. c.
The following information for Kellygirl's Athletic Wear Corp. for the year 2008: |
a. | Net sales = $22,600,000. |
b. | Cost of goods sold = $14,200,000. |
c. | Addition to retained earnings = $1,325,000. |
d. | Dividends paid to preferred and common stockholders = $1,375,000. |
e. | Interest expense = $950,000. |
f. | The firm's tax rate is 30 percent. |
g. | In 2009, net sales are expected to increase by $3.5million. |
h. | Cost of goods sold is expected to be 63 percent of net sales. |
i. | Expensed depreciation is expected to be the same as in 2008. |
j. | Interest expense is expected to be $1,250,000. |
k. | The tax rate is expected to be 30 percent of EBT. |
l. | Dividends paid to preferred and common stock holders will not change. |
Calculate the addition to retained earnings expected in 2009.(Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.) |
Addition to retained earnings | $ |
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