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Loma Company is a new company with a beginning retained earnings balance of zero. It has the following account balances at th
Accounts Payable Revenues Salaries Expense Dividends Utilities Expense Advertising Expense Short-term Investments Cash Land C
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Answer #1
Retained earnings = Net profit - Dividend payouts
Net profit = Revenue - Expenses
= $104000 - $17000 - $14000 - $10000
= $63000
Retained earnings = $63000 - $8000
                    = $55000
Option D is the correct answer.
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