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Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands)
Cash	9,100	Accounts Payable	1,900
Accounts Receivable	4,400	Debt	2,400
Inventory	4,800	Other Liabilities	600
Property Plant & Equipment	15,600	Total Liabilities	4,900
Other Assets	2,600	Paid-In Capital	6,900
		Retained Earnings	24,700
		Total Equity	31,600
Total Assets	36,500	Total Liabilities & Equity	36,500

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Sell product for $25,000 with historical cost of $20,000

What is the final amount in Retained Earnings?

Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.

Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet)

Answer 1

Final Amount of Retained Earnings = $ 24,705

Working:

Acme Company
Balance sheet
As on January 5, 2020
[amounts in thousands]
Cash [9100+25]	$    9,125	Account Payable	$    1,900
Accounts Receivable	$    4,400	Debt	$    2,400
Inventory [4800-20]	$    4,780	Other Liabilities	$        600
Property,plant, and equipment:	$ 15,600	Total Liabilities	$    4,900
Other Assets	$    2,600	Paid-In Capital	$    6,900
		Retained Earnings [24700+5]	$ 24,705
		Total Equity	$ 31,605
Total Assets	$ 36,505	Total Liabilities & Equity	$ 36,505

Notes:

1) Selling product increases revenue and cash, decreases inventory.

2) Increased revenue will be added to retained earnings

= Sell - Cost = $ 25000 - $ 20,000 = $ 5000