Please use the following information to answer questions 4-5:

Cash $10,000 Accounts Payable $7,000
Accounts Receivable $6,400 Mortgage Payable $65,000
Supplies $1,500 Long-term Debt $36,000
Building $150,000 Notes Payable $9,000
Equipment $80,000 Preferred Stock $32,000
Merchandise Inventory $18,000 Retained Earnings ?
Prepaid Rent $3,000
Common Stock $60,000

Retained earnings total:
A. $59,900
B. $78,100
C. $92,000
D. $151,900

A

To calculate the retained earnings, we need to consider the formula for calculating retained earnings:

Retained Earnings = Beginning Retained Earnings + Net Income - Dividends

Given the information provided, we can see that the beginning retained earnings are not stated explicitly. In this case, we can assume that the beginning retained earnings are zero since they are not mentioned.

Next, we need the information for net income and dividends to calculate the retained earnings.

Unfortunately, the information for both net income and dividends is not provided. Without this information, we cannot calculate the retained earnings accurately.

Therefore, based on the given information, we cannot determine the actual value of retained earnings. So the correct answer is N/A (not applicable) or unknown.