Question: Here is my work need to make sure its correct. Total Sales $91,000 Cost $45,300 Less:depreciation expense $23,279 EBIT $22,421 Less:interest expense $3,850 EBT(100%) $18,571
Here is my work need to make sure its correct.
| Total Sales | $91,000 |
| Cost | $45,300 |
| Less:depreciation expense | $23,279 |
| EBIT | $22,421 |
| Less:interest expense | $3,850 |
| EBT(100%) | $18,571 |
| Less:tax@25%(21360*25%) | $4,271 |
| Net income(75%)(12800+3220) | $17,820 |
| Less:Dividends | $3,520 |
| Addition to retained earnings | $14,300 |
Given the following information for O'Hara Marine Co., calculate the depreciation expense: sales = $91,000; costs = $45,300; addition to retained earnings = $14,300; dividends paid = $3,520; interest expense = $3,850; tax rate = 23 percent. (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) Depreciation expense $ 23,279
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