ou have been given the following information for Moore’s HoneyBee Corp.:
Net sales = $44,000,000.
Gross profit = $19,400,000.
Other operating expenses = $3,400,000.
Addition to retained earnings = $8,328,000.
Dividends paid to preferred and common stockholders = $2,100,000.
Depreciation expense = $2,000,000.
The firm’s tax rate is 21 percent. The firm's interest expense is all tax deductible.
Calculate the cost of goods sold and the interest expense for Moore’s HoneyBee Corp. (Round your answers to the nearest dollar amount.)

Recall the mathematical equation:
Gross Profit = Net Sales  Cost of Goods sold
Hence, 19,400,000 = 44,000,000  Cost of Goods sold
Hence, Cost of Goods sold = 44,000,000  19,400,000 = $ 24,600,000
Recall the fundamental equation of accounting of net income:
Net income = Addition to retained earnings + Dividends paid to preferred and common stockholders =(Gross Profit  Other Operating expenses  Depreciaton  Interest) x (1  Tax rat...
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