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Statement of retained earnings. Use the data from the following financial statements in the popup window,...

Statement of retained earnings. Use the data from the following financial statements in the popup window,

LOADING...The company paid interest expense of $18,000 for 2017and had an overall tax rate of 40 % for 2017. Complete the statement of retained earnings for 2017, and determine the dividends paid last year.

The distributed earnings is . (Round to the nearest dollar.)

Complete the statement of retained earnings: (Round to the nearest dollar.)

Statement of Retained Earnings

Year Ending December 31, 2017

Beginning balance $

Add net income $

Subtract dividends $

Ending balance $

Partial Income Statement Year Ending 2017
Sales revenue	$350,100
Cost of goods sold	$141,800
Fixed costs	$42,800
Selling, general, and administrative expenses	$28,100
Depreciation	$45,800

Partial Balance Sheet 12/31/2016
ASSETS		LIABILITIES
Cash	$16,200	Notes payable	$14,100
Accounts receivable	$27,800	Accounts payable	$18,900
Inventories	$48,200	Long-term debt	$190,100
Fixed assets	$367,900	OWNERS' EQUITY
Accumulated depreciation (-)	$140,500	Retained earnings
Intangible assets	$81,800	Common stock	$131,900

Partial Balance Sheet 12/31/2017
ASSETS		LIABILITIES
Cash	$26,000	Notes payable	$12,200
Accounts receivable	$19,000	Accounts payable	$24,000
Inventories	$53,000	Long-term debt	$161,800
Fixed assets	$448,000	OWNERS' EQUITY
Accumulated depreciation (-)		Retained earnings
Intangible assets	$82,100	Common stock	$181,800

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Expert Solution

Opening retained earnings = Total assets -liabilities – common stock

= (16200+27800+48200+367900-140500+ 81800) – (14100+18900+190100) – 131900

=401400- 223100 -131900

=46400

Accumulated depreciation = 140500+ 45800 = 186300

Closing retained earnings = (26000+19000+ 53000+ 448000-186300+ 82100)-(12200+24000+161800)-181800

= 441800-198000 - 181800

=62000

Net Income = Sales -cost of goods sold – fixed costs-SG&A expenses – depreciation – Interest * (1-Tax)

= (350100-141800-42800-28100-45800-18000)*(1-0.4)

=73600* 0.6

= 44160

Amount transferred to retained earnings= 62000-46400 = 15600

Hence dividend = Net income – amount transferred

= 44160-15600

= 28560

Statement of Retained earnings

Beginning balance 46400

Add: Net Income 44160

Less: Dividends 28560

Closing Balance 62000

jeff jeffy answered 7 months ago

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Statement of retained earnings. Use the data from the following financial statements in the popup​ window,...

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