Is this correct
Sales ($) 696,000
COGS 200,000
Gross Profit 496,000
Expenses 300,000
EBIT 196,000
Interest Expense 10,000
EBT 186,000
Tax Expense(40%) 36,000
Net Income 175,000
Retained Earnings
(Jan 1) 150,000
Dividends Paid 25,000
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Is this correct
Sales ($) 696,000
COGS 200,000
Gross Profit 496,000
Expenses 300,000
EBIT 196,000
Interest Expense 10,000
EBT 186,000
Tax Expense(40%) 36,000
Net Income 175,000
Retained Earnings
(Jan 1) 150,000
Dividends Paid 25,000
Obviously I don't know if the actual numbers are correct, or if you missed something, or anything like that since I can't see the original, but everything's in the correct order and sub-totals all correct, etc. Through this point.Quote:
Originally Posted by ajohnson7713
This, however, is not 40% of earnings before tax.Quote:
Tax Expense(40%) 36,000
And even if 36,000 were correct, 186,000 less 36,000 doesn't equal 175,000Quote:
Net Income 175,000
You need to do some checking of that math there.
I'm not sure what you are trying to do here. You've just listed the RE beginning balance and the dividends. But I don't know why you listed it, because you haven't actually done anything with it. It doesn't belong on the income statement.Quote:
Retained Earnings
(Jan 1) 150,000
Dividends Paid 25,000
Are you supposed to also be doing a balance sheet?
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