Question

Please show all steps!

LMN Inc. had beginning retained earnings of $14721. During the year, the company reported sales of $69209, costs of $50895, depreciation of $2565, dividends of $554, and interest paid of $491. The tax rate is 23 percent. What is the retained earnings balance at the end of the year? Round answer to nearest dollar amount - no decimals.

Answer 1

INCOME STATEMENT	Amount
Sales	$               69,209
Less: Expenses
Cost of Goods Sold	$               50,895
Depreciation Expenses	$                 2,565
Interest Paid	$                     491
Total Expenses	$               53,951
Net Income Before Taxes	$               15,258
Less: Income Taxes @ 23%	$                 3,509
Net income	$               11,749
STATEMENT OF RETAINED EARNINGS
Beginning Retained Earnings	$               14,721
Add: Net Income	$               11,749
Less: Dividend on common Shares	$                     554
Closing Retained Earning	$               25,916
Answer = Retained earning balance at the end of the year = $ 25,916