Given the Following Information About a Corporation's Current Year Activities

question 23

Essay

Given the following information about a corporation's current year activities, compute the retained earnings for the current year.
$$\begin{array} {| l | c| } \hline \text { Retained earnings, December } 31 \text { (prior year) } & \$ 280,000 \\\hline \text { Cost of goods sold } & \$ 90,000 \\\hline \text { Other operating expenses } & \$ 54,000 \\\hline \text { Cash dividends } & \$ 31,800 \\\hline \begin{array} { l } \text { Correction of understatement of net income in prior period (inventory } \\\text { error) }\end{array} & \$ 23,000 \\\hline \text { Stock dividends } & \$ 20,000 \\\hline \text { Net income } & \$ 36,000 \\\hline\end{array}$$

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Definitions:

Strongest Support

The most compelling or persuasive evidence or arguments in favor of a particular claim or position.

Conclusion

The end or finish of an event, process, or text; in logic, a statement reached by reasoning.

Coward

An individual who lacks courage or is excessively afraid of potential harm or risks.

Inductive Argument

A type of reasoning in which the premises seek to supply strong evidence for (not absolute proof of) the truth of the conclusion.