Question

Atlantic Corporation reported the following amounts at the end of the first year of operations: Common stock $ 270,000 Sales revenue $ 940,000 Total assets $ 740,000 Dividends declared $ 65,000 Total liabilities $ 410,000 What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year

Answer 1

See below

Step-by-step explanation:

According to the above information, Retained earning is

Sales revenue $940,000 - dividend declared $65,000 = $875,000

Retained earning is $857,000