DURATUL HOLDINGS

STATEMENT OF FINANCIAL POSITION AS OF $31$ DECEMBER $2021($RM$)$

Cash $12,000$

Accruals $6,000$

Account receivable $11,000$

Notes payable $9,000$

Inventory $11,500$

Long term debt $13,000$

Net plant and equipment $14,500$

Common stock $11,500$

Retained earnings $9,500$

TOTAL ASSETS $49,000$

TOTAL LIABILITIES & EQUITY $49,000$

i$.$ Sales for $2021$ was RM$12,500,$ and it is expected to increase $20$ percent in the year $2022.$

ii$.$ Net income for $2021$ was RM$12,000.$

iii. The current dividend payment was RM$3,000.$

iv$.$ The company is operating at full capacity.

Based on the Duratul Holdings statement of financial position as of $31$ December $2021,$ determine the new retained earnings for the company.

a$)$ RM$20,000$

b$)$ RM$19,500$

c$)$ RM$20,300$

d$)$ RM$17,500$