Question

Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands)
Cash	9,900	Accounts Payable	2,700
Accounts Receivable	4,500	Debt	3,500
Inventory	3,800	Other Liabilities	1,000
Property Plant & Equipment	16,800	Total Liabilities	7,200
Other Assets	1,600	Paid-In Capital	8,000
		Retained Earnings	21,400
		Total Equity	29,400
Total Assets	36,600	Total Liabilities & Equity	36,600

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Sell product for $35,000 with historical cost of $28,000
2. Sell product for $20,000 with historical cost of $16,000
3. Sell product for $25,000 with historical cost of $20,000

What is the final amount in Retained Earnings?

Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.

Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).

Answer 1

	Final amount in Retained Earnings	=	$                21,416
	Workings:
			($ in thousands)
	Retained earnings as on January 5, 2020	=	$                21,400
Add:	Net Income	=	$                         16
	Retained earnings as on January 6, 2020	=	$                21,416
	Net Income		($ in thousands)
1	($35 - $28)	=	7
2	($20 - $16)	=	4
3	($25- $20)	=	5
	Net Income	=	16

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