using income statement. given the following information for sookie\'s cookies co

Question

using income statement. given the following information for sookie's cookies co., calculate the depreciation expense: sales=$55000; costs=$43200; addition to retained earnings=$2600; dividends paid =$1150; interest expense=$1670; tax rate=40 percent. using income statement. given the following information for sookie's cookies co., calculate the depreciation expense: sales=$55000; costs=$43200; addition to retained earnings=$2600; dividends paid =$1150; interest expense=$1670; tax rate=40 percent.

Explanation / Answer

First we need to work on the income statement.

First we calculate net income.......

Net income = Dividends + Addition to retained earnings

Net income = $1,150 + 2,600

Net income = $3,750

The net income is the taxable income so.....

Net income = Taxable income

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