The Corner Store Paid $46 in Dividends and $120 in Interest

Multiple Choice

The Corner Store paid $46 in dividends and $120 in interest expense during the year. The addition to retained earnings is $142 and net new equity is $50. The tax rate is 20 %. Sales are $2,400 and depreciation is $140. What are the earnings before interest and taxes?

A) $286
B) $325
C) $355
D) $2,072
E) $2,260