Question 14

1. The following account balance information is available for XYZ Co., representing all accounts shown on its statement of financial position as of December 31, 20X7:

   Cash$3,500,000

   Accounts receivable$2,500,000

   Marketable securities.....$800,000

   Prepaid insurance...$200,000

   Equipment (net)...$7,000,000

   Current liabilities (total)..$2,100,000

   Long-term liabilities (total).$7,000,000

   Common stock.....$1,000,000

   Retained earnings ?

   What is XYZ Co.s retained earnings balance on December 31, 20X7?

   	a.	$3,900,000.
   	b.	$6,000,000.
   	c.	$4,900,000.
   	d.	$2,700,000.