Problem:
Papa Roach Exterminators, Inc., has sales of $699,000, costs of $385,000, depreciation expense of $47,000, interest expense of $25,000, and a tax rate of 30 percent. If the firm paid out $80,000 in cash dividends.
Required:
Question: What is the addition to retained earnings?
Note: Be sure to show how you arrived at your answer.