Wean Corporation's budgeted balance sheet for the coming year shows total assets of $5,000,000 and total liabilities of $2,000,000. Common stock and retained earnings make up the entire stockholders' equity section of the balance sheet. Common stock remains at its beginning balance of $1,500,000. The projected net income for the year is $333,000. The company pays no cash dividends. What is the balance of retained earnings at the beginning of the budget period?
A) $1,067,000
B) $1,167,000
C) $1,833,000
D) $1,500,000

Question

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The Answer of Wean Corporation's budgeted balance sheet for the coming year shows total assets of $5,000,000 and total liabilities of $2,000,000. Common stock and retained earnings make up the entire stockholders' equity section of the balance sheet. Common stock remains at its beginning balance of $1,500,000. The projected net income for the year is $333,000. The company pays no cash dividends. What is the balance of retained earnings at the beginning of the budget period?
A) $1,067,000
B) $1,167,000
C) $1,833,000
D) $1,500,000

Wean Corporation's Budgeted Balance Sheet for the Coming Year Shows