Chamber's Tube & Rim Company reported Retained Profits of $20 000 at the end of the year. The accompanying statement of comprehensive income for the year ending 31 December reported $10 000 in income and $20 000 in expenses. The balance of Retained Profits at the beginning of the year must have been:

Question

Quizplus · Accepted Answer

The net income for the year is $10,000 - $20,000 = -$10,000 (a loss). The ending retained profits are $20,000, so the beginning retained profits must have been $30,000 ($20,000 + $10,000 loss).

Chamber's Tube & Rim Company Reported Retained Profits of $20