Question

Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30, 2013. On that date the firm had cash and marketable securities of $25,135, accounts receivable of $43,758, inventory of $165,200, net fixed assets of $329,800, and other assets of $13,125. It had accounts payables of $67,855, notes payables of $36,454, long-term debt of $223,200, and common stock of $150,000. How much retained earnings did the firm have? Retained earnings $

Answer 1

Total liabilities and Owners' Equity
Current liabilities:
Accounts payable	$             67,855
Notes payable	$             36,454
Total current liabilities		$          104,309
Non-current liabilities-Long term debt		$          223,200
Total liabilities		$          327,509
Common stock,	$           150,000
Retained earnings = 577018-327509-150000 =	$             99,509	$          249,509
Total liabilities and owners' equity		$          577,018
ANSWER:
Retained earnings	$             99,509