Did I do any of this right and how do I figure Retain earnings (where does net income and dividends come from?
Cash .05($1,150,000) = $57,500
Accounts Receivable .15($1,150,000) = $172,500
Inventory .25($1,150,000) = $287,500
Fixed Assets .40($1,150,000) = $ 460,000
Total Assets $977,500
Liabilities + Owners’ Equity
Accounts Payable .15($1,150,000) = $172,500
Accruals .10($1,150,000) = $115,000
Notes Payable $12,000,000
Long-Term Bonds $ 5,000,000
Common Stock $10,000,000
This is where I run into a snag where is the Net Income and Dividends come from?
Retain Earnings $33,000,000 + Net Income – Dividends
To determine net income and dividends, you would need to have additional information regarding the company's financial statements. Net income is calculated by subtracting total expenses (such as operating expenses, interest expenses, and taxes) from total revenues. Dividends, on the other hand, represent the portion of profits that a company chooses to distribute to its shareholders.
Once you have the net income and dividends data, you can calculate the retained earnings by using the formula:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
In your case, it seems like you have the beginning retained earnings amount of $33,000,000. To complete the calculation, you would need to provide the net income and dividends figures.
To figure out Retained Earnings, you need to know the values of Net Income and Dividends. Net Income is the amount of money your company has earned after deducting all expenses, including taxes. Dividends, on the other hand, are the payments made to shareholders as a distribution of profits.
To find Net Income, you would need to review your company's income statement. The income statement is a financial statement that shows your company's revenues, expenses, and ultimately its net income. Subtract all the expenses (such as cost of goods sold, operating expenses, taxes, etc.) from your total revenue to find the net income.
Once you have the Net Income, you can then subtract the Dividends paid out to shareholders during that period. Dividends are typically declared by the company's board of directors and paid out to shareholders as a share of profits. Dividends are reported on the company's cash flow statement or in the notes to the financial statements.
Once you have the Net Income and Dividends, you can plug in those values into the formula for Retained Earnings:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
In your case, you provided a beginning Retained Earnings value of $33,000,000. If you have the values for Net Income and Dividends, you can now calculate the Retained Earnings.