From the Data Given Below, Calculate the Retained Earnings Balance

question 40

Essay

From the data given below, calculate the Retained Earnings balance as of December 31, 2020.
$\begin{array}{lrr} \text { Retained earnings, December 31, 2019 } &\$840,000\\ \text { Cost of equipment purchased during 2020 } &250,000\\ \text { Net loss for the year ended December 31,2020 } &86,000\\ \text { Dividends declared and paid in 2020} &110,000\\ \text { Decrease in cash balance from January 1,2020 to December 31,2020 } &24,000\\ \text {Decrease in long-term debt in 2020 } &134,000\\\end{array}$

---

Definitions:

Total Revenue

The overall amount of money generated by a firm from selling its goods or services, calculated as the unit price multiplied by the quantity sold.

Perfectly Inelastic Demand

The case in which the quantity demanded does not respond at all to changes in the price; the demand curve is a vertical line.

Demand Curves

A graph representing the relationship between the price of a good and the quantity of that good buyers are willing to purchase at various prices.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, defined as the percentage change in quantity demanded divided by the percentage change in price.