The ABC company had an interest expense of $4,406, and a tax rate of 37%. The company paid$2,399 as dividends. If the retained earnings is 2006 were $51,337, what are the retained earnings in 2007?

To calculate the retained income in 2007, subtract all expenses and total revenue. Then add any extra income like dividends. Finally, subtract tax. Start by subtracting from the total sales amount of $93,054 all the expenses that are associated with it. This leaves a net income of $52,063.

Dividends of $2,399 were included in the total. The total now stands at $54,462. The final deduction is $20,113 for taxes at 37%. This leaves $34,349 in retained earnings.

Overall, the retained earnings for ABC in 2007 would amount to $34,349 ($51 337 + 2 399 – 20 113) once all relevant factors are considered. The number includes both funds earned through business operations and any investment made in the past, while accounting for all necessary deductions like taxes and dividend payments.