QUESTION 29 The following information was taken from the May

QUESTION 29 The following information was taken from the May financial statements of the Bellows Falls Corporation. Determine the dollar amount of resources generated through management operations and retained in the company as of May 31 ssets, May 31 Common Stock, May 31 Dividends, May 1 through May 31 Expenses, May 1 through May 31 Liabilities, May 31 Retained Earnings, May 31 Revenues, May 1 through May 31 S460,000 $70,00 $15,00 S140,00 $330,000 $60,00 $190,00 a. S50,000 b. $60,000 C. $175,000 d. $70,000

Solution

29 Revenue 220000 Less Expense 180000 Net income 40000 28 Cash balance 90000 Cash paid for additional supplies -3400 Cash paid for supplies purchases -2700 Cash balance on august 31 83900