Asked by Candis
I am having a problem figuring out this problem. I understand the concept of depreciation and it occurs on non cash items over a period of time. However, there are no cash items to depreciate in this problem.
Given the following information for O'Hara Marine Co, calculate the depreciation expense:
Sales=$43000; costs=$27500; addition to retained earnings=$5300; dividends paid=$1530; interest expense=$1900; tax rate=35 percent.
Is there anyone that can point me in the right direction? Thanks
Given the following information for O'Hara Marine Co, calculate the depreciation expense:
Sales=$43000; costs=$27500; addition to retained earnings=$5300; dividends paid=$1530; interest expense=$1900; tax rate=35 percent.
Is there anyone that can point me in the right direction? Thanks
Answers
Answered by
bobpursley
Balance the books, you will be left with a depreciation expense entry.
Answered by
Candis
Thank you Bob...Does that work the same for an income statement too?
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