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The Income Statement for Dodson Corporation Reported Net Income of $22,400

question 45

Essay

The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31, 2012 before considering the following:
During the year the company purchased available-for-sale securities. At year end, the fair value of the investment portfolio was $2,100 more than cost.
The balance of retained earnings was $83,000 on December 31, 2011. Dobson Corporation paid $9,000 in cash dividends in 2012. Calculate the balance of retained earnings on December 31, 2012.


Definitions:

Driving Torque

The force that causes rotation in a mechanical system, typically generated by an engine or motor.

Operating Quadrants

The four potential modes of operation for a drive or motor, determined by the direction of torque and rotation or direction of current and voltage.

Torque

A measure of the force that can cause an object to rotate about an axis. It is a major consideration in machine design and operation.

Rotation

The act or process of moving or turning around a central axis or point.

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