Business Finance Homework Help?

Company ended 06 w/ a net profit before taxes $218,000. Subject to 40% tax rate and must pay $32,000 in preferred stock dividends before earnings on the 85,000 shares of common stock outstanding. If the firm paid common stock dividends of $0.80 per share, how many dollars would go to retained earnings. I need to see the work otherwise, I will never figure out how to do this in the future.

Dividends are paid only after taxes have been paid.

Profit before tax $218,000
Tax at 40% ($87,200)
Profit after tax $130,800
Less:
Preferred stock dividend ($32,000)
Common stock dividend ($68,000) - 85,000 shares x $0.80
Bal. to go to Retained Earnings $30,800

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　　Debt Financing 　　Capital Investment 　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds

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