Given the following information, what are the retained earnings in 20X9?

Select one:

a. -$11,500

b. $45,000

c. $53,500

d. $108,342

e. $353,000

Solutions

Expert Solution

The right option is (c).

Explanation:

Notes:

The following is the calculation of retained earnings:

Cash	90,000
A/R	86,250
Inventories	132,250
Net Fixed Assets	450,000
Total assets		758,500
less:Liabilities
A/P	100,000
N/P	45,000
LTD	260,000
C.S	300,000
Total liabilities		(705,000)
Retained earnings (758,500-705,000)		53,500

Hence, c. $53,500 is right option.

Umair answered 1 year ago

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