Question

Patterson Corporation began the year with retained earnings of $325,000. During the year, the company issued $500,000 of common stock, recorded expenses of $1,500,000, and paid dividends of $90,000. If Patterson’s ending retained earnings was $350,000, what was the company's revenue for the year?

Answer 1

Answer:

$1,615,000

Explanation:

total revenue for the year can be calculated by adding retained earnings (at end of the year) + distributed dividends + total expenses - retained earnings (at the beginning of the year)

total revenue = $350,000 + $90,000 + $1,500,000 - $325,000 = $1,615,000