Assume that retained earnings increased by 65063 from June 3

Assume that retained earnings increased by $65063 from June 30 of year 1, to June 30 of year 2. A cash dividend of $2082 was declared and paid during the year. The firm sold Capital Stock for $10,000 in cash during the year. Assume expenses for the year were $53712. Compute the revenue for the year.

Revenue for the year is $ 120,857

Working:

Step-1:Calcuation of Net Income for the year

	Increase of retained earning	$ 65,063
	Cash dividend		2,082

	Net Income for the year	67,145

Step-2:Calculation of Revenue

	Net Income for the year	67,145
	Expenses for the year	53,712

	Revenue for the year	1,20,857

Assume that retained earnings increased by $65063 from June 30 of year 1, to June 30 of year 2. A cash dividend of $2082 was declared and paid during the year.

Assume that retained earnings increased by 65063 from June 3

Solution

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