Computing retained earnings of firm


1) Maddux, Inc., has finished its fiscal year and reported following information. Company had present assets of= $153,413, net fixed assets of= $ 412,331, and other assets of= $7,822. Firm also has present liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. How much retained earnings do firm have?

 

a. $ 405,648

 

b. $243,648

 

c. $167,918

 

d. $573,566

 

2) Galan Associates made its financial statement for 2008 based on information given. Company had cash worth= $1,234, inventory worth= $13,480, and accounts receivables of $7,789. Company's net fixed assets are= $42,331, and other assets are= $1,822. It had accounts payables of= $9,558, notes payables of= $2,756, common stock of= $22,000, and retained earnings of= $14,008. How much long-term debt does firm include

 

a. $54,342

 

b. $76,342

 

c. $12,314

 

d. $18,334

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Accounting Basics: Computing retained earnings of firm
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