Question

i Data Table ... $ 79.6 1.2 6.6 Total revenue... Receivables. Current liabilities .... Common stock .... Interest expense.... Salary and other employee expenses .. Long-term liabilities.. 26.8 Investment assets (long-term) .. $ 0.9 Property and equipment, net ... 2.5 Other expenses. 39.6 Retained earnings, beginning .. 0.1 Retained earnings, ending...... 13.9 Cash........ 102.3 Other assets (long-term) ... 4.9 57.4 10.2 Print Done

Answer 1

Before Preparing Statement of Retained Earnings we need to prepare Income Statement to know the Net Income for the year 2018:-

John Dunn Realty Company

Income Statement

For the year ended August 31,2018

(In Millions)

Accounts	Amount	Amount
Total Revenues		$26.8
Less:- Expenses:-
Interest Expense	$0.1
Salary and other Employees Expenses	13.9
Other Expenses	6.6
Total Expenses		$(20.6)
Net Income		$6.2

John Dunn Realty Company

Statement of Retained Earnings

For the year ended August 31,2018

(In Millions)

Accounts	Amount
Retained Earnings, Beginning	$1.8
Add:- Net Income	6.2
	$8
Less:- Dividends*	(3.1)
Retained Earnings, Ending	$4.9

*** So $3.1 amount of Dividends John Dunn Realty Company declared during the year ended August 31,2018.(In Millions)

John Dunn Realty Company

Balance Sheet

August 31,2018

(In Millions)

Accounts	Amount	Amount
Asset:-
Cash	$57.4
Receivables	0.9
Property and Equipment, net	1.2
Investment Assets (Long-term)	79.6
Other Assets (Long-term)	10.2
Total Assets		$149.3
Liabilities and Stockholders Equity:-
Liabilities:-
Current Liabilities	$2.5
Long-term Liabilities	102.3
Total Liabilities		$104.8
Stockholders Equity:-
Common Stock	$39.6
Retained Earnings, Ending	4.9
Total Stockholders Equity		$44.5
Total Liabilities and Stockholders Equity		$149.3

Working Notes:-

Calculating Dividends for the year August 31,2018 (in Million):-

Dividends={ ( Retained Earnings, Beginning+Net Income) - Retained Earnings, Ending}

={($1.8+$6.2)-$4.9}

=($8-$4.9)

=$3.1