You are given the following information for Troy Pizza Company: Sales = $70,000; Costs = $31,900; Addition to retained earnings = $6,300; Dividends paid = $2,160; Interest expense = $5,000; Tax rate = 21 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
You are given the following information for Troy Pizza Company: Sales = $70,000; Costs = $31,900; Addition to retained earnings = $6,300; Dividends paid = $2,160; Interest expense = $5,000; Tax rate = 21 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You are given the following information for Troy Pizza Company: Sales = $70,000; Costs = $31,900; Addition to
(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Expert Solution
Step 1
Data given:
Sales = $70,000
Costs = $31,900
Addition to retained earnings = $6,300
Dividends paid = $2,160
Interest expense = $5,000
Tax rate = 21 percent.
Required: Depreciation expense.
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