Help Save &Exit; S s preparing the company\'s statement of cash flows for the fi

Question

Help Save &Exit; S s preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year Cash dividends declared for the year Proceeds from the sale of equipment Gain on the sale of equipment Cash dividends payable at the beginning of the year Cash dividends payable at the end of the year Net income for the year 328,000 73,758 126,800 7,358 32,450 39,580 162,258 Skipped The ending balance in retained earnings is Multsple Choice $423.850 $330.350 $429.700. $490,250 $416.500

Explanation / Answer

1) Ending balance of retained earning = Beginning retained earnings+Net income-Cash dividend declared

= 328000+162250-73750

Ending balance of retained earnings = 416500

So answer is e) $416500

2) Raw material purchased in april = 62000+(58000*25%)-15500 = 61000 literes

Raw material purchase cost = 61000*1.85 = 112850

So anwer is d) 112850

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