Both the cash and retained earnings have a question mark. How do I solve this? e

Question

Both the cash and retained earnings have a question mark. How do I solve this?

eSupplies Corporation began operations on January 1, 2011, as an online retailer of computer software and hardware. The following financial statement data were taken from eSupplies' records at the end of its first year of operations, December 31, 2011.

Accounts payable $ 20,000
Accounts receivable 60,000
Capital stock 252,000
Cash ?
Cash payments for operating activities 657,000
Cash receipts from operating activities 690,000
Cost of sales 435,000
Dividends 30,000
Income tax expense 53,000
Income taxes payable 8,000
Interest expense 2,000
Inventories 115,000
Note payable (due in 2017) 50,000
Property, plant, and equipment 265,000
Retained earnings ?
Sales 750,000
Selling and administrative expense 80,000

Explanation / Answer

I would probably try putting the information you do have into the different financial statements and try to plug in the numbers. Then you should be able to figure out how to get the two missing numbers. I hope that helps! You could also just use this information to complete the accounting equation: Assets=Liabilities+owners equity and that should also help!

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.