Answer:
Retained earnings balance is $411,000. (assuming the numbers stated in the question were in $)
Explanation:
Retained earnings is the accumulated earnings of an organization over time. It is an integral part of the owners equity in the balance sheet. The accounting equation gives the relationship between all he elements of the balance sheet and may be stated as
assets = liabilities + owner's equity
Given (assume all amounts are stated in $);
Accounts Payable = 57,000
Long-term investments = 35,000
Accounts Receivable = 32,000
Trademarks = 6,000
Building = 255,000
Accrued Expenses = 9,000
Cash = 15,000
Short-term Notes Payable = 35,000
Equipment = 76,000
Common Stock = 1,000
Retained Earnings ??
Interest Income = 2,000
Prepaid Expenses = 12,000
Inventory = 82,000
Sales = 123,000
Dividends paid = 25,000
Salary Expense = 22,000
Cost of Goods Sold = 62,000
Total assets = 82,000 + 12,000 + 76,000 + 15,000 + 255,000 + 6,000 + 35,000 + 32,000 = 513,000
Total liabilities = 57,000 + 9,000 + 35,000 = 101,000
Total equity = 513,000 - 101,000
= 412,000
Retained earnings = 412,000 - 1,000 = 411,000
Assumptions made is that the balances given were as at the end of the period.
