Ajax Company Was Founded in 2012

question 158

Multiple Choice

Ajax Company was founded in 2012. Its yearly earnings are shown here:
2012: Net income of $4,000
2013: Net income of $23,000
2014: Net income of $2,000
2015: Net loss of $30,000
No dividends were paid. At the end of the year 2015, what amount would be shown on the balance sheet for Retained earnings?

• A) Negative $1,000
• B) Positive $29,000
• C) Positive $31,000
• D) Negative $30,000

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