Building an Income Statement Travis, Inc., has sales of $387,000, costs of $175,000, depreciation expense of $40,000,

Question:

Building an Income Statement Travis, Inc., has sales of $387,000, costs of $175,000, depreciation expense of $40,000, interest expense of $21,000, and a tax rate of 35 percent. What is the net income for the firm? Suppose the company paid out $30,000 in cash dividends. What is the addition to retained earnings?