question: Why is retained earnings on December 31, 2018, equal to $80,000 in all three cases...

70.2K

Verified Solution

Question

Accounting

question: Why is retained earnings on December 31, 2018, equalto $80,000 in all three cases despite the reporting of differentamounts of net income each year?
Is it A,B, or C?
A: Net income over sufficiently long time periods equals cashinflows minus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in the va
B: Net income over sufficiently long time periods equals cashinflows plus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in theval
C: Net income over sufficiently long time periods equals cashinflows minus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in the va

Answer & Explanation Solved by verified expert

3.6 Ratings (668 Votes)

Net income over sufficiently long time periods equals cash inflows minus cash outflows Walmart acquired the land in 2016 for 100000 and sold it for 180000 in See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

question: Why is retained earnings on December 31, 2018, equalto $80,000 in all three cases despite the reporting of differentamounts of net income each year?Is it A,B, or C?A: Net income over sufficiently long time periods equals cashinflows minus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in the vaB: Net income over sufficiently long time periods equals cashinflows plus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in thevalC: Net income over sufficiently long time periods equals cashinflows minus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in the va