1. Papa Roach Exterminators, Inc., has sales of $634,000, costs of $305,000, depreciation expense of $43,000, interest expense of $29,000, and a tax rate of 30 percent. If the firm paid out $80,000 in cash dividends. What is the addition to retained earnings?
2. How much would need to be invested today to accumulate $6,000 in 6 years when the interest rate is 7% compounded yearly? (Use Excel)
3. How long will it take for $2,000 to accumulate to $4,000 if the interest rate is 5%? (Use Excel to solve).