I have sales of 2500, cost of goods sold 1800, interest expense 105, tax rate of 35%. Also tells me the change in retained earnings are 200 and dividends paid are 80. Its asking me to find depreciation but don't know how to get it. I know that adding the change in retained earnings and the dividends give me net income but still can't get the answer

Thanks for any help

You're starting on the right track... if retained earnings increased by 200 even after a dividend payout of 80, this implies the after-tax net income was 280. So far, so good.

With a tax rate of 35%, this means the pre-tax net income was 280 / 0.65 = X. (The pre-tax net is the result of dividing the after-tax net by (1 - t), where t is the effective tax rate.

With X as the pre-tax net income, depreciation expense is easily determined as the deduction which creates that amount of pre-tax net income. I think you can wrap 'er up from here. Good luck!

You my friend, are the man ha... Thank you so much, I got the answer right away.

Glad to help, M.