56. The following are comparative balance sheets and income statement for Bahati

Question

56. The following are comparative balance sheets and income statement for Bahati Corporation:
    
                                        Bahati Corporation
                                Comparative Balance Sheets
                           as of December 31, 2010 and 2009
    
    

Assets     2010     2009 Cash $  37,000 $120,000 Accounts receivable   195,000   105,000 Inventory   180,000   225,000 Long-term investments             0     60,000      Totals                  $412,000 $510,000 Liabilities and shareholder's equity Accounts payable $  12,000 $115,000 Salaries and wages payable      8,000      2,000 Interest payable      1,000      3,000 Income taxes payable     20,000    15,000 Notes payable     70,000   100,000 Common stock     125,000     125,000    Retained earnings   176,000   150,000      Totals $412,000 $510,000

Explanation / Answer

It will be 45000 outflow.

Nothins else

Retained Earning

closing bal= opening + current profit- div

150000+71000-45000=176000

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