Question

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Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands)
Cash	14,700	Accounts Payable	2,400
Accounts Receivable	4,800	Debt	3,700
Inventory	3,800	Other Liabilities	5,000
Property Plant & Equipment	15,800	Total Liabilities	11,100
Other Assets	900	Paid-In Capital	6,000
		Retained Earnings	22,900
		Total Equity	28,900
Total Assets	40,000	Total Liabilities & Equity	40,000

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

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

Final amount in Retained Earnings= $22,917

Working

Beginning retained earnings	$ 22,900.00
Add: Net income	$          17.00
Final amount of Retained Earnings	$ 22,917.00

.

	Sales revenue	Cost of goods sold	Net Income
Transaction 1	$      25.00	$          20.00
Transaction 2	$      20.00	$          16.00
Transaction 3	$      40.00	$          32.00
TOTAL	$      85.00	$          68.00	$      17.00