You are given the following information for Gandolfino Pizza Co-- sale.docx

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You are given the following information for Gandolfino Pizza Co.: sales = $44,000; costs = $21,100; addition to retained earnings = $5,750; dividends paid = $1,400; interest expense = $5,100; tax rate = 35 percent. Calculate the depreciation expense. Solution Gandolfino Pizza Co. Details Amt $ Sales 44,000 Cost 21,100 l Addition to retained earning 5,750 m Dividend paid 1,400 n Net Income =l+m= 7,150 o Tax rate = 35% p Taxable Income =n/65%= 11,000 q Interest expense 5,100 r EBIT=p+q= 16,100 s Sales -Cost = 22,900 t Depreciation expense=s-r= $ 6,800.00 .

You are given the following information for Gandolfino Pizza Co.: sales = $44,000; costs =
$21,100; addition to retained earnings = $5,750; dividends paid = $1,400; interest expense =
$5,100; tax rate = 35 percent. Calculate the depreciation expense.
Solution
Gandolfino Pizza Co. Details Amt $ Sales 44,000 Cost 21,100 l
Addition to retained earning 5,750 m Dividend paid 1,400 n Net
Income =l+m= 7,150 o Tax rate = 35% p Taxable Income =n/65%=
11,000 q Interest expense 5,100 r EBIT=p+q= 16,100 s Sales -Cost
= 22,900 t Depreciation expense=s-r= $ 6,800.00

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