Question: 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.

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?

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