Question

In: Finance

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

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.

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

Umair answered 1 year ago
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