You are given the following information for Sookie’s Cookies Co.: sales = $51,90

Question

You are given the following information for Sookie’s Cookies Co.: sales = $51,900; costs = $38,900; addition to retained earnings = $2,950; dividends paid = $970; interest expense = $1,490; tax rate = 30 percent.(Enter your answer as directed, but do not round intermediate calculations.)

Calculate the depreciation expense.

You are given the following information for Sookie’s Cookies Co.: sales = $51,900; costs = $38,900; addition to retained earnings = $2,950; dividends paid = $970; interest expense = $1,490; tax rate = 30 percent.(Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

Sales - costs - interest expense - depreciation expense= income before the tax

=>

(51900 - 38900 - 1490 - depriciation expense) * (1-0.3) = 2950 + 970

=>

depriciation expense = 5910

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