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In: Accounting

If total assets of Brooks Corporation are $100,000, total liabilities are $17,000, and capital stock is...

If total assets of Brooks Corporation are $100,000, total liabilities are $17,000, and capital stock is $20,000, how much are the retained earnings of Brooks Corporation?

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Expert Solution

Solution:

Total Retained Earnings of Brooks Corporation is $63,000

a) Total Equity

Total assets = Total Liabilites + Total Equity

Total Equity = (Total assets - Total Liabilities)

=( $100,000- $17,000)

Total Equity =$83,000

b) Retained Earnings

Total Equity = (Capital stock +Retained Earnings)

Retained Earnings = (Total Equity - Capital Stock)

= ($83,000 - $20,000)

Retained Earnings = $63,000  

ekkarill92 answered 2 years ago
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