71. Premium Pet Supplies has of $98,400. The costs of goods sold are $55,000 and the other costs are $21,000. Depreciation is $12,000 and the tax rate is 35 percent. What is the net income of the company? a. $2,560 b. $3,640 C. $6,760 d. $10,400 e. $14,560 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC SECTION: 2.2 TOPIC: NET INCOME TYPE: PROBLEMS 72. Precious Gems Jewelry has sales of $267,400 and costs of $200,800. The depreciation expense is $36,100. Interest paid equals $19,700 and dividends paid equal $4,500. The tax rate is 34 percent. What is the amount of the addition to retained earnings? a. $828 b. $1,142 C. $2,628 d. $3,672 e. $4,158 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC SECTION: 2.2 TOPIC: ADDITION TO RETAINED EARNINGS TYPE: PROBLEMS 73. Last year, Sally's Studio added $2,300 to retained earnings from sales of $66,800. The company had costs of $52,300, dividends of $1,000, and interest paid of $900. The tax rate was 34 percent. What was the amount of the depreciation expense? a. $4,200 b. $6,800 C. $8,600 d. $9,500 e. $14,500 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION OF DIFFICULTY: INTERMEDIATE SECTION: 2.2 TOPIC: DEPRECIATION TYPE: PROBLEMS
71. Premium Pet Supplies has of $98,400. The costs of goods sold are $55,000 and the other costs are $21,000. Depreciation is $12,000 and the tax rate is 35 percent. What is the net income of the company? a. $2,560 b. $3,640 C. $6,760 d. $10,400 e. $14,560 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC SECTION: 2.2 TOPIC: NET INCOME TYPE: PROBLEMS 72. Precious Gems Jewelry has sales of $267,400 and costs of $200,800. The depreciation expense is $36,100. Interest paid equals $19,700 and dividends paid equal $4,500. The tax rate is 34 percent. What is the amount of the addition to retained earnings? a. $828 b. $1,142 C. $2,628 d. $3,672 e. $4,158 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC SECTION: 2.2 TOPIC: ADDITION TO RETAINED EARNINGS TYPE: PROBLEMS 73. Last year, Sally's Studio added $2,300 to retained earnings from sales of $66,800. The company had costs of $52,300, dividends of $1,000, and interest paid of $900. The tax rate was 34 percent. What was the amount of the depreciation expense? a. $4,200 b. $6,800 C. $8,600 d. $9,500 e. $14,500 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION OF DIFFICULTY: INTERMEDIATE SECTION: 2.2 TOPIC: DEPRECIATION TYPE: PROBLEMS
Test-Bank-Essentials-of-Corporate-Finance-6th-Edition-Ross.docx