Problem:

PDQ corp. has sales of $4,000,000, the firm's cost of goods sold is $2,500,000 and its total operating expenses are $600,000. The firm's interest expense is $250,000 and the corporate tax rate is 40%. The firm paid dividends to preferred stockholders of $40,000 and the firm distributed $60,000 in dividend payments to common stockholders.

Required:

Question: What is PDQ''s addition to retained earnings?

Note: Explain all steps comprehensively.