Elizabeth coal ltd has total assets of $8,000,000, common stock of $4,200,000, and liabilities of $1,200,000. What is the amount

Question

2 years ago

10

for retained earnings?.

1 answer:

prisoha [69] · Answer 1 · 2023-02-20T08:10:05+03:00

Based on the information given the amount of the retained earning is $2,600,000.

<h3>Retained earning</h3>

Using this formula

Retained earning=Total assets - Common stock - Liabilities

Where:

Total assets=$8,000,000

Common stock=$4,200,000

Liabilities=$1,200,000

Let plug in the formula

Retained earning=$8,000,000-$4,200,000-$1,200,000

Retained earning=$2,600,000

Inconclusion the amount of the retained earning is $2,600,000.

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