Question

Question 5 1 out of 1 points Consider the following balance sheet data for Steve's Computer Stores Cash & equivalents $ 100,500 Accounts payable $ 70,500 Receivables 204,000 Notes payable 130,500 Inventories 188,000 Accrued wages and 70.500 taxes Total current assets $ 492,500 Total current liabilities $ 271,500 Long-term debt 256,500 Common stock 150,000 nog Net fixed assets 262.000 Retained earnings 76,500 Total assets Cros $ 754,500 Total liabilities & equity $ 754,500 000.00 2 How much of the company's profits have been reinvested over the years? Selected Answer: a. $76,500 con Foto Answers: a. $76,500 b. $226,5000.000 todos c. $754,500.00.004.21 Tias d. $100,500 DES 0.000.- TA e. $150,000 O OCEL

how much of the companys profits have been reinstated over the years

Answer 1

Since retained earnings demonstrate profit after all obligations are satisfied, they show whether the company is genuinely profitable and can invest in itself. Retained earnings are either paid off as dividends to shareholders or are reinstated into a company.

Here, the company is not paying dividends, so all the retained earnings must be reinstated in the company.

Answer = $76,500

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