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

question 77

Essay

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

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Definitions:

Utilitarianism

An ethical theory that promotes actions that maximize happiness and well-being for the majority of a population.

Laissez Faire

An economic philosophy advocating minimal governmental intervention in the market and the private sector.

Capitalism

An economic system characterized by private or corporate ownership of goods and services, intended for profit.

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An individual who studies or develops concepts related to justice, focusing on its application in society, law, or morality.