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Best Deal Auto Parts Began 2013 with $400,000 in Assets,$140,000

Question 176

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Best Deal Auto Parts began 2013 with $400,000 in assets,$140,000 in liabilities,and $160,000 of retained earnings.Net income for the year was $100,000,and dividends of $80,000 were paid.
A) Prepare a Statement of Retained Earnings for 2013.
B) What is the nature of purpose of the statement of retained earnings?
C) What was the amount of Capital Stock at the beginning of 2013 ?
D) What events would cause the two stockholders equity items to increase?
E) How do you identify whether the company was profitable during 2013 by examining the statement of retained earnings?

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