Builtrite had sales of $36,000,000 last year. Cost of goods sold were
calculated at 65% of sales. Builtrite’s operating expenses were
$6,000,000 which included depreciation expense.
Bonds with a total
par value of $12,000,000 were outstanding and had a 9% coupon rate.
Builtrite received $200,000 in dividends from stock owned and paid out
$600,000 in dividends to its preferred stockholders. Builtrite sold stock
that it had purchased in 2008 and realized a $350,000 capital gain.
Calculate Builtrite’s taxable income and tax liability.
Builtrite had annual sales of $21,000,000 with the following information:
Dividend income was $200,000
Interest expense was based on the total par value of $10,000,000 in bonds
with a 7% coupon rate
Operating expenses were $1,800,000
Depreciation expense was an additional $280,000
COGS were calculated at 60% of sales
Preferred stock dividends of $100,000 were paid
Common stock dividends of $300,000 were paid
A long-term capital gain of $500,000 was realized
A short-term capital loss of $600,000 was realized
What are Builtrite's retained earnings for the year?