ETJ had sales of $7 million this past year. Its cost of goods sold was $3.5 million and its operating expenses were $950,000. Interest expenses on
outstanding debt were $800,000 and the company paid $75,000 in stock dividends. Its tax rate is 30%. What was the company’s taxable income
and tax liability (tax paid). What is the company’s addition to retained earnings?
1. Taxable Income: Legs : {2051:0bede Sold 3,500,000.00 Le 55 : Operating Expenaeg 950,000.00 Le 55 : Intereat 000,000.00 Taxable Income 1,350,000.00 2. Tax Liability: Taxable Income LIE-0,000.00…
