Calculate payout ratio given the following information: cash dividends paid = $6,000; sales = $100,000; cost of goods sold = $45,000; selling and administrative expenses = $25,000; interest expense = $6,000; tax rate = 30%.

A) 64.29%
B) 68.23%
C) 50%
D) 31.77%
E) 35.71%

Cost Of Goods Sold

The immediate costs associated with producing the goods a company sells, including the price of materials and labor.

Selling And Administrative Expenses

Costs incurred by a company that are not directly linked to the production process, including marketing expenses, salaries of administrative personnel, and office supplies.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported as a line item in the income statement.