Question

For Year 2, the Sacramento Corporation had beginning and ending Retained Earnings balances of $179,225 and $199,900, respectively. Also during Year 2, the board of directors declared cash dividends of $19,900, which were paid during Year 2. The board also declared a stock dividend, which was issued and required a transfer in the amount of $15,500 to paid-in capital. Total expenses during Year 2 were $36,916. Based on this information, what was the amount of total revenue for Year 2

Answer 1

$92,991

Step-by-step explanation:

The computation of the amount of total revenue is shown below;

As we know that

Ending retained earnings = Beginning retained earning - dividend + net income

$199,900 = $179,225 - $19,900 - $15,500 + net income

So, the net income is $56,075

Now the total revenue is

= Net income + expense

= $56,075 + $36,916

= $92,991