Help I have tried and tried and cant figure this one out Use

Help! I have tried and tried and can\'t figure this one out!

Use the data from the following financial statements.

The company paid interest expense of $18,300 for 2014 and had an overall tax rate of 40% for 2014. Complete the statement of retained earnings for? 2014, and determine the dividends paid last year.

1) The distributed earnings is ?$ _________ <<< How on earth do I figure this out.

Partial Income Statment Year Ending 2014
Sales Revenue	$349,800
Cost of good sold	$141,900
Fixed Cost	$43,200
Selling, general, and administrative expense	$28100
Depreciation	$46, 200

Solution

Answers

Working

ASSETS

31 December 2013

31 December 2014

Cash

$                             16,100.00

$               26,000.00

Accounts Receivable

$                             28,200.00

$               18,900.00

Inventories

$                             48,100.00

$               53,100.00

Fixed Assets

$                           367,900.00

$             446,800.00

Accumulated Depreciation

$                        (140,700.00)

$          (186,900.00) [140,700 last year’s + 46,200 depreciation expense of 2014]

Intangible Assets

$                             81,900.00

$               82,200.00

A

TOTAL ASSETS

$                           401,500.00

$             440,100.00

Liabilities

Notes Payable

$                             14,200.00

$               11,900.00

Accounts Payable

$                             18,900.00

$               24,000.00

Long Term Debt

$                           190,200.00

$             161,800.00

B

TOTAL LIABILITIES

$                           223,300.00

$             197,700.00

C

Common Stock

$                           132,000.00

$             182,000.00

D=A - B - C

Retained Earnings Balance

$                             46,200.00 [Beginning balance for 2014]

$               60,400.00 [Ending balance for 2014]

A

Sales Revenue

$      349,800.00

B

Cost of Goods Sold

$      141,900.00

C=A-B

Gross Profits

$      207,900.00

1

Fixed Cost

$        43,200.00

2

Selling General Administrative expense

$        28,100.00

3

Depreciation

$        46,200.00

D = C - (1+2+3)

Operating Income

$        90,400.00

E

Interest Expense

$        18,300.00

F = D - E

Net Income before income taxes

$        72,100.00

G = F x 40%

Income Taxes

$        28,840.00

H = F - G

Net Income

$        43,260.00

= $ 43,260 – $ 14,200
= $ 29,060 = Answer = Distributed Earnings

A [See Step 1 for 2013]

Retained earnings 12/31/2013

$        46,200.00

B [See Step 2]

Net Income for 2014

$        43,260.00

C=A+B

Total

$        89,460.00

D [See Step 1 for 2014]

Retained Earnings as calculated for 12/31/2014

$        60,400.00

E = C - D

Distributed Earnings

$        29,060.00

Working	ASSETS	31 December 2013	31 December 2014
	Cash	$                             16,100.00	$               26,000.00
	Accounts Receivable	$                             28,200.00	$               18,900.00
	Inventories	$                             48,100.00	$               53,100.00
	Fixed Assets	$                           367,900.00	$             446,800.00
	Accumulated Depreciation	$                        (140,700.00)	$          (186,900.00) [140,700 last year’s + 46,200 depreciation expense of 2014]
	Intangible Assets	$                             81,900.00	$               82,200.00
A	TOTAL ASSETS	$                           401,500.00	$             440,100.00
	Liabilities
	Notes Payable	$                             14,200.00	$               11,900.00
	Accounts Payable	$                             18,900.00	$               24,000.00
	Long Term Debt	$                           190,200.00	$             161,800.00
B	TOTAL LIABILITIES	$                           223,300.00	$             197,700.00
C	Common Stock	$                           132,000.00	$             182,000.00
D=A - B - C	Retained Earnings Balance	$                             46,200.00 [Beginning balance for 2014]	$               60,400.00 [Ending balance for 2014]