Krissy57af
Oct 4, 2009, 11:14 AM
Green Company reported the following amounts at the end of its first year of operations:
Contributed Capital $30,000
Total Expenses $61,000
Total Assets $90,000
Dividends $16,000
Total Liabilities $25,000
Calculate the total revenues earned by Green Company during its first year of operations"
I am trying to use the equation revenues-expenses=net income since expenses are given, I need to find net income before I can solve for revenues.
I used assets=liabilites+equity to solve for equity and got $65,000.
Since Equity is contributed capital plus retained earnings I solved for retained earnings and got $35,000. Since the information given in the problem was from the end of the year (Dec 31), this would be the ending retained earnings correct? How do I find the beginning retained earnings so I can figure out net income?
The only other equation we've been given so far is: Beginning retained earnings+net income-dividends=ending retained earnings.
Contributed Capital $30,000
Total Expenses $61,000
Total Assets $90,000
Dividends $16,000
Total Liabilities $25,000
Calculate the total revenues earned by Green Company during its first year of operations"
I am trying to use the equation revenues-expenses=net income since expenses are given, I need to find net income before I can solve for revenues.
I used assets=liabilites+equity to solve for equity and got $65,000.
Since Equity is contributed capital plus retained earnings I solved for retained earnings and got $35,000. Since the information given in the problem was from the end of the year (Dec 31), this would be the ending retained earnings correct? How do I find the beginning retained earnings so I can figure out net income?
The only other equation we've been given so far is: Beginning retained earnings+net income-dividends=ending retained earnings.