Answer:
The balance of retained earning is $210,000
Explanation:
In this question, we have to apply the accounting equation which is shown below:
Total assets = Total liabilities + shareholder's equity
where,
Total assets = Inventory + Cash + Net Property, Plant, & Equipment + Accounts Receivable
= $325,000 + $150,000 + $600,000 + $30,000
= $1,105,000
Total liabilities = Notes payable + account payable
= $100,000 + $45,000
= $145,000
And, the shareholder equity = Common stock + retained earnings
Now put these values to the above formula
So, the answer would be equal to
$1,105,000 = $145,000 + $750,000 + retained earnings
$1,105,000 = $895,000 + retained earnings
So, retained earnings = $210,000
