Max Industries reported the following amounts on its balance sheet on December 3
ID: 2637281 • Letter: M
Question
Max Industries reported the following amounts on its balance sheet on December 31, 2014:
Cash
$180,000
Notes payable
100,000
Inventory
325,000
Contributed Capital
750,000
Net Property, Plant & Equipment
600,000
Accounts Receivable
30,000
Accounts Payable
75,000
Retained Earnings
?
1). What is the amount of Max
Cash
$180,000
Notes payable
100,000
Inventory
325,000
Contributed Capital
750,000
Net Property, Plant & Equipment
600,000
Accounts Receivable
30,000
Accounts Payable
75,000
Retained Earnings
?
Explanation / Answer
Calculation of Retained Earning:
Retained Earning = Total Assets - Total Liabilities - Capital
Total Assets = $1,135,000 Total Liabilities = $175,000, Capital = $750,000
Retained Earning = 1,135,000 - 925,000 = $210,000
Max Industries
Balance Sheet
As on Dec.31, 2014
Amount($) Amount($) Current Assets: Current Liabilities: Cash 180,000 Notes Payable 100,000 Inventory 325,000 Accounts Payable 75,000 Account Receivables 30,000 Stockholder's Equity Fixed Assets: Contributed Capital 750,000 Net Property, Plant and Equipment 600,000 Retained Earning 210,000 Total Assets 1,135,000 Total Liabilities and Stockholders Equity 1,135,000