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Suppose the firm in Problem 2 paid out $95,000 in cash dividends. What is the addition to retained earnings?
Data from Problem 2
Griffin’s Goat Farm, Inc., has sales of $796,000, costs of $327,000, depreciation expense of $42,000, interest expense of $34,000, and a tax rate of 21 percent. What is the net income for this firm?
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