Question

Statement of retained earnings. Use the data from the following financial statements in the popup​ window, LOADING.... The company paid interest expense of $ 18 comma 400 for 2017 and had an overall tax rate of 40 % for 2017. Complete the statement of retained earnings for 2017​, and determine the dividends paid last year.

Partial Income Statement Year Ending 2017
Sales revenue	$350,000
Cost of goods sold	$142,000
Fixed costs	$43,200
Selling, general, and administrative expenses	$27,800
Depreciation	$46,200

Partial Balance Sheet 12/31/2016
ASSETS		LIABILITIES
Cash	$15,800	Notes payable	$14,000
Accounts receivable	$28,000	Accounts payable	$19,000
Inventories	$48,000	Long-term debt	$190,000
Fixed assets	$368,100	OWNERS' EQUITY
Accumulated depreciation (-)	$141,800	Retained earnings
Intangible assets	$81,900	Common stock	$131,900

Partial Balance Sheet 12/31/2017
ASSETS		LIABILITIES
Cash	$25,900	Notes payable	$12,100
Accounts receivable	$19,200	Accounts payable	$23,800
Inventories	$53,000	Long-term debt	$161,900
Fixed assets	$448,000	OWNERS' EQUITY
Accumulated depreciation (-)		Retained earnings
Intangible assets	$82,200	Common stock	$181,800

Answer 1

Partial Balance Sheet 12/31/2016
ASSETS		LIABILITIES
Cash	$15,800	Notes payable	$14,000
Accounts receivable	$28,000	Accounts payable	$19,000
Inventories	$48,000	Long-term debt	$190,000
Fixed assets	$368,100	OWNERS' EQUITY
Accumulated depreciation (-)	($141,800)	Retained earnings	$45,100	Balancing figure
Intangible assets	$81,900	Common stock	$131,900
Total	$400,000	Total	$400,000
Partial Income Statement Year Ending 2017
Sales revenue	$350,000
Cost of goods sold	($142,000)
Fixed costs	($43,200)
Selling, general, and administrative expenses	($27,800)
Depreciation	($46,200)
EBIT	$90,800
Interest	($18,400)
PBT	$72,400
Tax@ 40%	($28,960)
PAT	$43,440
artial Balance Sheet 12/31/2017
ASSETS		LIABILITIES
Cash	$25,900	Notes payable	$12,100
Accounts receivable	$19,200	Accounts payable	$23,800
Inventories	$53,000	Long-term debt	$161,900
Fixed assets	$448,000	OWNERS' EQUITY
Accumulated depreciation (-)	($188,000)	Retained earnings	$60,700	Balancing figure
Intangible assets	$82,200	Common stock	$181,800
Total	$440,300		$440,300
Accumulated earnings
Opening	($141,800)
Dep for the year	($46,200)
Closing balance	($188,000)
Retained earnings
Opening balance	$45,100
Add profit for the year	$43,440
Total	$88,540
Less closing balance	($60,700)
Dividiend paid last year	$27,840