Maddux, Inc., has completed its fiscal year and reported the following information. The company had current assets of $153,413, net fixed assets of $412,331, and other assets of $7,822. The firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. Calculate the amount of retained earnings. $243,648 $167,918 $573,566 $405,648

Question

Giovani Lane

Business

15 June, 07:27

Maddux, Inc., has completed its fiscal year and reported the following information. The company had current assets of $153,413, net fixed assets of $412,331, and other assets of $7,822. The firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. Calculate the amount of retained earnings. $243,648 $167,918 $573,566 $405,648

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Jaylin Bowers · Answer 1

Retained earnings $ 167,918

Explanation:

To determine the amount of retained earnings, we need to consider the fundamental accounting equation of:

Assets = Liabilities + Shareholders Equity

The total assets are

Total Assets: Current Assets + Net Fixed assets + Other assets

$ 153,413 + $412,331 + $ 7,822 = $ 573,566

Total Liabilities: Current liabilities + long term debt

$ 65,314 + $ 178,334 = $ 243,648

Common Stock = $ 162,000

Any remaining amount after the amounts are inserted into the accounting equation is the retained earnings amount.

$ 573,566 = $ 243,648 + $ 162,000 = $ 167,918