Maddux, Inc., has completed its fiscal 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 firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. How much retained earnings does the firm have?

Question

Quizplus · Accepted Answer

To find the retained earnings, we can use the following equation: 
Retained earnings = Total assets - Total liabilities - Common stock 
= ($153,413 + $412,331 + $7,822) - ($65,314 + $178,334) - $162,000 
= $573,566 - $243,648 - $162,000 
= $167,918 
Therefore, the answer is choice C, $167,918.