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Excel Exercise 1.xlsx - Build a Model Exercise 1 Student...

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Build a Model Exercise 1PointsStudentName:Problems 14&15100Chapter:6 Accounting for Financial ManagementProblem 1450a. Cumberland Industries' most recent sales were $455,000,000; operating costs (excluding depreciation)were equal to 85% of sales; net fixed assets were $67,000,000; depreciation amounted to 10% of net fixedassets; interest expenses were $8,550,000; the state-plus-federal corporate tax rate was 40% andCumberland paid 25% of its net income out in dividends.Given this information, construct Cumberland'sincome statement. Also calculate total dividends and the addition to retained earnings.The input information required for the problem is outlined in the "Key Input Data" section below.Using this dataand the balance sheet above, we constructed the income statement shown below.
Common dividends$7,950
Addition to retained earnings$23,850

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Term
Fall
Professor
rhaines
Tags
Balance Sheet, Generally Accepted Accounting Principles

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