Problem - Determining Retained Earnings and Net Income Using the Balance Sheet
The following information is reported for Kinney Corporation at the end of 2013.
Accounts Receivable $23,000
Retained Earnings$
Accounts Payable $11,000
Supplies Inventory $9,000
Cash $8,000
Equipment $138,000
Common Stock $110,000
a. Compute the amount of retained earnings at the end of 2013.
b. If the amount of retained earnings at the beginning of 2013 was $30,000, and $12,000 in cash dividends were declared and paid during 2013, what was its net income for 2013?