Maddux Ltd has completed its financial year and reported the following information. The company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $7,822. The company also has current liabilities worth $65,314, long-term debt of $178,334, and ordinary share capital of $162,000. How much retained earnings does the company have?

Question

Quizplus · Accepted Answer

Retained earnings can be calculated by finding the difference between total assets and total liabilities and equity. Total assets = $153,413 + $412,331 + $7,822 = $573,566. Total liabilities and equity = $65,314 + $178,334 + $162,000 = $405,648. Retained earnings = Total assets - Total liabilities and equity = $573,566 - $405,648 = $167,918.

Maddux Ltd Has Completed Its Financial Year and Reported the Following