Question
Use the following information to answer the question: December 31 ($000) Stockholder's equity 1,000 Accrued Expenses 400 Cost of Goods Sold 800 Accumulated Depreciation 200
Use the following information to answer the question:
December 31 ($000)
Stockholder's equity 1,000
Accrued Expenses 400
Cost of Goods Sold 800
Accumulated Depreciation 200
General & Administrative Expenses 120
Tax Rate 40%
Preferred stock dividends 100
Interest expense 15
Sales revenue 2,000
Depreciation expense 200
Gross Profit 1,200
Calculate net income for this situation.
Net income is $100,000 and preferred dividends paid are $100,000 and common stock dividends paid are $100,000. Beginning retained earnings were $500,000. Calculate the ending balance in retained earnings.
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