Atlantic Corporation reported the following amounts at the end of the first year of operations:
Contributed capital $200,000; sales revenue $800,000; total assets $600,000; dividends declared $40,000; and total liabilities $320,000.What are Atlantics' retained earnings at the end of the year and how much expenses were incurred during the year?

Question

Quizplus · Accepted Answer

Stockholders' equity ($600,000 -$320,000) = Contributed capital ($200,000) + Retained earnings ($80,000).Retained earnings ($80,000) = Net income ($120,000 - Dividends ($40,000.)Net income ($120,000) = Sales Revenue ($800,000) - Expenses ($680,000).

Atlantic Corporation Reported the Following Amounts at the End of the First