While the income statement purports to show the profitability of the firm , the balance sheet delineates the firm 's 34 . Who would normally look at free cash flows to determine whether there are sufficient excess funds to pay back a loan associated with a leverage bailout ? 1 . As of January 1 , 2014 the company has $ 300,000 in retained earnings . During the year the company had earnings / net income of $ 150,000 and paid cash dividends of $ 50,000 . What 9s the amount of retained earnings as of December 31 , 2014 ? 2 . As of January 1 , 2014 the company has 500,000 in retained earnings . During the year the company had a net loss of 50,000 and paid cash dividends of 100,000 . What is the amount of retrained earnings as of December 31 , 2014 3 . The book value of an assets is measured by its original value minus 4 . A building cost the firm $ 500,000 has a fair value of $ 800,000 and accumulated depreciation of $ 200,000 . The book value of the building is ? 5 . Common stockholders are sensitive