Cutlery had retained earnings of $162,850 at the beginning of 2010. During the year the company had total revenues of $875,000, total expenses (including taxes) of $795,000, bought vehicles and computers for $122,000, and paid cash dividends of $18,500. Compute Cutlery's retained earnings at the end of 2010.

My work:

Beginning retained Earnings $162,850 + net income $875,000-$795,000+$122,000=202,000 - dividends $18,500 = $183,500 retained earnings.

Your formula is correct execpt for bought vehicles and computers, which is not part of retained earnings

Thank You