Question

Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands)
Cash	9,100	Accounts Payable	1,900
Accounts Receivable	4,400	Debt	2,400
Inventory	4,800	Other Liabilities	600
Property Plant & Equipment	15,600	Total Liabilities	4,900
Other Assets	2,600	Paid-In Capital	6,900
		Retained Earnings	24,700
		Total Equity	31,600
Total Assets	36,500	Total Liabilities & Equity	36,500

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

What is the final amount in Retained Earnings?

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

Answer 1

Cash will increase by $ 25 (in thousands)

Inventory decrease by $ 20 and Retained earnings increases by $ 5 , Final balance of Retained Earnings = $ 24705

Acme Company

Balance sheet As of January 6 , 2020 (amounts in thousands)

Cash	9125	Accounts Payable	1900
Accounts Receivable	4400	Debt	2400
Inventory	4780	Other liabilities	600
Property Plant & Equipment	15600	Total Liabilities	4900
Other Assets	2600	Paid-In Capital	6900
		Retained Earnings	24705
		Total Equity	31605
Total Assets	36505	Total Liabilities & Equity	36505