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Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands)
Cash	13,700	Accounts Payable	2,000
Accounts Receivable	3,200	Debt	3,600
Inventory	5,100	Other Liabilities	900
Property Plant & Equipment	15,400	Total Liabilities	6,500
Other Assets	800	Paid-In Capital	7,200
		Retained Earnings	24,500
		Total Equity	31,700
Total Assets	38,200	Total Liabilities & Equity	38,200

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

1. Sell product for $40,000 with historical cost of $32,000

What is the final amount in Retained Earnings?

Please specify your answer in the same units as the balance sheet.

Answer 1

Retained Earning Before transaction:	24500
Add: Sales Revenue	40000
Less: Cost of Inventory	-32000
New balance of retained earning	32500
Acme Company
Balance Sheet
As of January 6, 2020
(amounts in thousands)
Cash	53,700	Accounts Payable	2,000
Accounts Receivable	3,200	Debt	3,600
Inventory	(26,900)	Other Liabilities	900
Property Plant & Equipment	15,400	Total Liabilities	6,500
Other Assets	800	Paid-In Capital	7,200
		Retained Earnings	32,500
		Total Equity	39,700
Total Assets	46,200	Total Liabilities & Equity	46,200