Kimick Corporation reported the following information at the end of its first year of operations:
What must have been the expenses for the year?

Question

Kimick Corporation reported the following information at the end of its first year of operations:
 What must have been the expenses for the year?

Quizplus · Accepted Answer

Assets - Liabilities - Common Stock = Retained earnings
($510,000 - $210,000 - $120,000 = $180,000)
Ending retained earnings + Dividends - Beginning retained earnings = Net income (loss)
($180,000 + $90,000 - $0 = $270,000)
Expense = Revenue - Net income
(x = $630,000 - $270,000)
(x = $360,000)

Kimick Corporation Reported the Following Information at the End of Its