You are given the following information for Gandolfino Pizza Co.: sales = $45,00

Question

You are given the following information for Gandolfino Pizza Co.: sales = $45,000; costs = $21,500; addition to retained earnings = $8,750; dividends paid = $1,000; interest expense = $5,500; tax rate = 35 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.)

You are given the following information for Gandolfino Pizza Co.: sales = $45,000; costs = $21,500; addition to retained earnings = $8,750; dividends paid = $1,000; interest expense = $5,500; tax rate = 35 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.)

Explanation / Answer

Details Amount Sales       45,000.00 Cost      -21,500.00 Interest Addition to Retained earnings         8,750.00 Add:Dividend Paid         1,000.00 Net Proft After Tax         9,750.00 Net Profit Before Tax 9750/.35       15,000.00 Add: Interest         5,500.00 Operating Profit       20,500.00 Sales       45,000.00 Cost      -21,500.00 Operating Profit Before depreciation       23,500.00 Depreciation=(Operating Profit before depreciation-Operating Profit)         3,000.00

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