Question

Use the data from the following financial statements in the popup​ window,

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. The company paid interest expense of

$ 18 comma 700$18,700

for

20172017

and had an overall tax rate of

40 %40%

for

20172017.

Complete the statement of retained earnings for

20172017​,

and determine the dividends paid last year.

The distributed earnings is

​$nothing

Partial Income Statement Year Ending 2017
Sales revenue	$350,200
Cost of goods sold	$142,000
Fixed costs	$43,000
Selling, general, and administrative expenses	$28,100
Depreciation	$46,100

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in order to copy its contents into a​ spreadsheet.)

Partial Balance Sheet 12/31/2016
ASSETS		LIABILITIES
Cash	$15,800	Notes payable	$13,800
Accounts receivable	$27,800	Accounts payable	$19,100
Inventories	$47,800	Long-term debt	$189,900
Fixed assets	$368,000	OWNERS' EQUITY
Accumulated depreciation (-)	$141,500	Retained earnings
Intangible assets	$82,100	Common stock	$131,900

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in order to copy its contents into a​ spreadsheet.)

Partial Balance Sheet 12/31/2017
ASSETS		LIABILITIES
Cash	$26,000	Notes payable	$12,200
Accounts receivable	$19,100	Accounts payable	$24,000
Inventories	$52,900	Long-term debt	$161,800
Fixed assets	$447,900	OWNERS' EQUITY
Accumulated depreciation (-)		Retained earnings
Intangible assets	$81,900	Common stock	$182,000

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Answer 1

Statement of retained earnings for 2017 is shown below
Statement of retained earning
For year ending December 31, 2017
Beginning balance	$45,300
Add: Net income	$43,380
Less: Dividend	$28,480
Ending balance	$60,200
Thus, distributed earnings is $28,480
Beginning balance is calculated using 2016 balance sheet
Retained earnings is plug in figure
Cash	$15,800
Accounts receivable	$27,800
Inventories	$47,800
Fixed assets	$368,000
Accumulated depreciation	-$141,500
Intangible assets	$82,100
Total assets	$400,000
Less: Liabilities
Notes payable	$13,800
Accounts payable	$19,100
Long-term debt	$189,900
Less: Common stock	$131,900
Total liabilities and common stock	$354,700
Retained earnings	$45,300
Ending balance is calculated using 2017 balance sheet
Retained earnings is plug in figure
Cash	$26,000
Accounts receivable	$19,100
Inventories	$52,900
Fixed assets	$447,900
Accumulated depreciation	-$187,600	(141500+46100)
Intangible assets	$81,900
Total assets	$440,200
Less: Liabilities
Notes payable	$12,200
Accounts payable	$24,000
Long-term debt	$161,800
Less: Common stock	$182,000
Total liabilities and common stock	$380,000
Retained earnings	$60,200
Calculate net income for 2017
Sales revenue	$350,200
Cost of goods sold	$142,000
Fixed costs	$43,000
Selling, general, and administrative expenses	$28,100
Depreciation	$46,100
Interest paid	$18,700
Income before taxes	$72,300
Less: Taxes @ 40%	$28,920
Net income	$43,380
Dividend is calculated as balancing figure
Ending retaned earnings	60200
Less: Beginning retained earnings plus net income	$88,680	45300+43380
Dividend paid	$28,480