Question

EEE Corp. reports the following information for the fiscal year. (in $ million) Revenue $7,015 Expenses $3,890 Beginning retained earnings $4,615 Liabilities at year-end $5,225 Contributed capital at year-end $820 Dividends $500 Effective tax rate 0% What is the total assets of EEE Corp. at the end of the fiscal year

Answer 1

See below

Step-by-step explanation:

First we will compute the ending retained earnings

= Beginning retained earnings $4,615 + Revenue $7,010 - Dividends $500

= $11,125

Then , the total assets of EEE corp. would be

= Capital contributed $820 + Retained earnings $11,125 + liabilities at year end $5,225

= $17,170