Statement of retained earnings. Use the data from the following financial statements in the popup? window, LOADING...The...

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Statement of retained earnings. Use the data from the followingfinancial statements in the popup? window,
LOADING...The company paid interest expense of $18,000 for2017and had an overall tax rate of 40 % for 2017. Complete thestatement of retained earnings for 2017, and determine thedividends paid last year.
The distributed earnings is . (Round to the nearest?dollar.)
Complete the statement of retained? earnings:???(Round to thenearest? dollar.)
Statement of Retained Earnings
Year Ending December 31, 2017
Beginning balance $
Add net income $
Subtract dividends $
Ending balance $
Partial Income Statement Year Ending 2017
Sales revenue
$350,100
Cost of goods sold
$141,800
Fixed costs
$42,800
Selling, general, and administrative expenses
$28,100
Depreciation
$45,800
Partial Balance Sheet 12/31/2016
ASSETS
LIABILITIES
Cash
$16,200
Notes payable
$14,100
Accounts receivable
$27,800
Accounts payable
$18,900
Inventories
$48,200
Long-term debt
$190,100
Fixed assets
$367,900
OWNERS' EQUITY
Accumulated depreciation (-)
$140,500
Retained earnings
Intangible assets
$81,800
Common stock
$131,900
Partial Balance Sheet 12/31/2017
ASSETS
LIABILITIES
Cash
$26,000
Notes payable
$12,200
Accounts receivable
$19,000
Accounts payable
$24,000
Inventories
$53,000
Long-term debt
$161,800
Fixed assets
$448,000
OWNERS' EQUITY
Accumulated depreciation (-)
Retained earnings
Intangible assets
$82,100
Common stock
$181,800

Answer & Explanation Solved by verified expert

4.3 Ratings (992 Votes)

Opening retained earnings = Total assets -liabilities – common stock

= (16200+27800+48200+367900-140500+ 81800) – (14100+18900+190100) – 131900

=401400- 223100 -131900

=46400

Accumulated depreciation = 140500+ 45800 = 186300

Closing retained earnings = (26000+19000+ 53000+ 448000-186300+ 82100)-(12200+24000+161800)-181800

= 441800-198000 - 181800

=62000

Net Income = Sales -cost of goods sold – fixed costs-SG&A expenses – depreciation – Interest * (1-Tax)

= (350100-141800-42800-28100-45800-18000)*(1-0.4)

=73600* 0.6

= 44160

Amount transferred to retained earnings= 62000-46400 = 15600

Hence dividend = Net income – amount transferred

= 44160-15600

= 28560

Statement of Retained earnings

Beginning balance 46400

Add: Net Income 44160

Less: Dividends 28560

Closing Balance 62000

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Transcribed Image Text

Statement of retained earnings. Use the data from the followingfinancial statements in the popup? window,LOADING...The company paid interest expense of $18,000 for2017and had an overall tax rate of 40 % for 2017. Complete thestatement of retained earnings for 2017, and determine thedividends paid last year.The distributed earnings is . (Round to the nearest?dollar.)Complete the statement of retained? earnings:???(Round to thenearest? dollar.)Statement of Retained EarningsYear Ending December 31, 2017Beginning balance $Add net income $Subtract dividends $Ending balance $Partial Income Statement Year Ending 2017Sales revenue$350,100Cost of goods sold$141,800Fixed costs$42,800Selling, general, and administrative expenses$28,100Depreciation$45,800Partial Balance Sheet 12/31/2016ASSETSLIABILITIESCash$16,200Notes payable$14,100Accounts receivable$27,800Accounts payable$18,900Inventories$48,200Long-term debt$190,100Fixed assets$367,900OWNERS' EQUITYAccumulated depreciation (-)$140,500Retained earningsIntangible assets$81,800Common stock$131,900Partial Balance Sheet 12/31/2017ASSETSLIABILITIESCash$26,000Notes payable$12,200Accounts receivable$19,000Accounts payable$24,000Inventories$53,000Long-term debt$161,800Fixed assets$448,000OWNERS' EQUITYAccumulated depreciation (-)Retained earningsIntangible assets$82,100Common stock$181,800

Partial Income Statement Year Ending 2017
Sales revenue	$350,100
Cost of goods sold	$141,800
Fixed costs	$42,800
Selling, general, and administrative expenses	$28,100
Depreciation	$45,800

Partial Balance Sheet 12/31/2016
ASSETS		LIABILITIES
Cash	$16,200	Notes payable	$14,100
Accounts receivable	$27,800	Accounts payable	$18,900
Inventories	$48,200	Long-term debt	$190,100
Fixed assets	$367,900	OWNERS' EQUITY
Accumulated depreciation (-)	$140,500	Retained earnings
Intangible assets	$81,800	Common stock	$131,900

Partial Balance Sheet 12/31/2017
ASSETS		LIABILITIES
Cash	$26,000	Notes payable	$12,200
Accounts receivable	$19,000	Accounts payable	$24,000
Inventories	$53,000	Long-term debt	$161,800
Fixed assets	$448,000	OWNERS' EQUITY
Accumulated depreciation (-)		Retained earnings
Intangible assets	$82,100	Common stock	$181,800