Respuesta :
Answer:
a. Cash = $17,200
b. Retained earnings = $48,300.
Explanation:
Equipment Net Book Value (NBV) = Cost - Accumulated depreciation = $43,000 - $17,400 = $25,600.
Retained earnings for the year = Net income - dividend = $19,300 - $6,000 = $13,300.
Closing balance of retained earnings = Beginning balance of retained earnings + Retained earnings for the year = $35,000 + $13,300 = $48,300.
The management of Mecca Copy Budgeted Balance Sheet
$
Fixed Asset
Equipment 25,600
Current Assets
Cash (see calculation below) 17,200
Accounts receivable 9,900
Supplies inventory 4,200
Total Assets 56,900
Equity
Common stock 5,000
Retained earnings (see calculation above) 48,300
Total equity 53,300
Current Liability
Accounts payable 3,600
Total equity and liability 56,900
Note:
Cash = 56,900 - $25,600 - 9,900 - 4,200 = $17,200
