The following information is provided by Ferrara Corporation: $\begin{array}{lr}
\text { Beginning retained earnings } & \$ 50,000 \
\text { Ending retained earnings } & 70,000 \
\text { Dividends declared and paid } & 10,000 \
\text { Revenue } & 50,000
\end{array}$
-Calculate Ferrara Corporation's expenses.

A)$20,000
B)$30,000
C)$40,000
D)Cannot tell from the information provided.

Question

The following information is provided by Ferrara Corporation: $\begin{array}{lr}
\text { Beginning retained earnings } & \$ 50,000 \
\text { Ending retained earnings } & 70,000 \
\text { Dividends declared and paid } & 10,000 \
\text { Revenue } & 50,000
\end{array}$
-Calculate Ferrara Corporation's expenses.

A)$20,000
B)$30,000
C)$40,000
D)Cannot tell from the information provided.

Quizplus · Accepted Answer

The expenses can be calculated using the formula: Beginning Retained Earnings + Revenue - Dividends - Ending Retained Earnings = Expenses. Plugging in the numbers: $50,000 + $50,000 - $10,000 - $70,000 = $20,000.

The Following Information Is Provided by Ferrara Corporation -Calculate Ferrara Corporation's Expenses