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Can you please explain how to do this thank you. Assets Cash $10,374 Inventory 1

ID: 2349237 • Letter: C

Question

Can you please explain how to do this thank you.




Assets
Cash $10,374
Inventory 15,374
Building 39,626
Total assets $65,374


Liabilities and Stockholders' Equity
Liabilities
Accounts payable $5,000
Stockholders' equity
Common stock (a)

Retained earnings (b)

Total liabilities and
stockholders' equity $65,374


Income Statement

Revenues $87,454

Cost of goods sold (c)

Administrative expenses 10,000
.
Net income (d)$




Retained Earnings Statement

Beginning retained earnings $15,374

Net income (e)

Dividends 5,000

Ending retained earnings $40,454

Explanation / Answer

e. net income 40454-15374-5000= $30080 Cost of goods sold (c) 87454-10000-30080= $47374 Retained earnings (b) $40,454 Common stock (a) 65374-5000-40454= $19920