Question

Multiple Choice Question The accounting records of Direct Marketing Company (DMC) indicate that the company has $500 of cash; $3,500 of land; $1,000 of liabilities; $600 of common stock; and $2,400 of retained earnings. Based on this information, the percent of assets provided by earnings is

Answer 1

Based on the information given the percent of assets provided by earnings is: 60%.

Earnings percent of assets:

Total assets=Cash +Land

Total assets=$500+$3,500

Total assets=$4,000

Earnings percent of assets :

Earnings percent of assets=Retained earnings/Total assets×100

Earnings percent of assets=$2,400 ÷ $4,000×100

Earnings percent of assets=60%

Inconclusion  the percent of assets provided by earnings is: 60%.

Learn more about retained earnings here:brainly.com/question/25631040