What is the addition to retained earnings

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1. Travis, Inc., has sales of $391,000, costs of $179,000, depreciation expense of $44,000, interest expense of $25,000, and a tax rate of 40 percent. (Do not round intermediate calculations.)

What is the net income for the firm?

Suppose the company paid out $34,000 in cash dividends. What is the addition to retained earnings?

2. Huang, Inc., is obligated to pay its creditors $7,400 very soon. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

a. What is the market value of the shareholders' equity if assets have a market value of $9,050?

b. What is the market value of the shareholders' equity if assets equal $6,800?

3. If Jares, Inc., has an equity multiplier of 1.62, total asset turnover of 2.40, and a profit margin of 4.2 percent, what is its ROE?

Reference no: EM13853517

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