If National Inc has Common Stock of 80000 total assets of 17

If National Inc. has Common Stock of $80,000, total assets of $170,000, and total liabilities of $70,000, its Retained Earnings equals:

Solution

Common Stock + Retaiend Earning + Total Liabilities = Total Assets

So, Retained Earning = Total Assets - Common Stock - Total Liabilities

Retained EArnings = $ 170,000 - $ 80,000 - $ 70,000

Retained EArnings = $ 20,000

Answer = Retained EArning = $ 20,000