What would be addition to retained earnings

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Problem 1: Assume that the company was operating at 75% capacity in 2010 if in 2011 it starts operating at full capacity what would be retained earnings in 2011 if the company has dividend payout policy of 60%. If the sales in 2010 was $36,000 and COGS is 85.51% of sales. Interest Payment would remain same for two years at $ 717 and tax rate is 40% what would be Addition to retained earnings if the company operates on 75% compare to full capacity.

Reference no: EM132693844

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