Question

The accountant for Crusoe Company is 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 $ 132,000 Cash dividends declared for the year 52,000 Proceeds from the sale of equipment 87,000 Gain on the sale of equipment 8,200 Cash dividends payable at the beginning of the year 24,000 Cash dividends payable at the end of the year 27,200 Net income for the year 98,000 What is the ending balance for retained earnings

Answer 1

the Ending retained earnings balance is $178,000

Step-by-step explanation:

The computation of the ending retained earnings balance is shown below:

Ending retained earnings balance is

= Opening retained earning balance + net income for the year + cash dividend declared for the year

= $132,000 + $98,000 - $52,000

= $178,000

hence, the Ending retained earnings balance is $178,000

The same is relevant