Question

Waterway Industries began the year with retained earnings of $316000. During the year, the company issued $421000 of common stock, recorded expenses of $1204000, and paid dividends of $82100. If Waterway ending retained earnings was $336000, what was the company’s revenue for the year?

Answer 1

Answer:

revenues = 1,201,100

Explanation:

$Beginning Retained Earnings +/- Net Income/Loss - Dividends Equals Ending Retained Earning$

beginning 421,000

+net income (revenues - 1,204,000)

- dividends 82,100

ending 336,000

421,000 + (r-1,204,000) - 82,100 = 336,000

revenues = 336,000 + 82,100 + 1,204,000 - 421,000

revenues = 1,201,100