Answer:
a. Cash = $17,200
b. Retained earnings = $48,300.
Explanation:
Equipment Net Book Value (NBV) = Cost - Accumulated depreciation = $43,000 - $17,400 = $25,600.
Retained earnings for the year = Net income - dividend = $19,300 - $6,000 = $13,300.
Closing balance of retained earnings = Beginning balance of retained earnings + Retained earnings for the year = $35,000 + $13,300 = $48,300.
The management of Mecca Copy Budgeted Balance Sheet
$
<u>Fixed Asset</u>
Equipment 25,600
<u>Current Assets</u>
Cash (<em>see calculation below</em>) 17,200
Accounts receivable 9,900
Supplies inventory <u>4,200</u>
Total Assets <u>56,900</u>
<u>Equity</u>
Common stock 5,000
Retained earnings (see calculation above) <u>48,300 </u>
Total equity 53,300
<u>Current Liability</u>
Accounts payable <u>3,600</u>
Total equity and liability <u>56,900</u>
Note:
Cash = 56,900 - $25,600 - 9,900 - 4,200 = $17,200
