Question

Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands)
Cash	14,300	Accounts Payable	1,900
Accounts Receivable	4,100	Debt	3,200
Inventory	5,800	Other Liabilities	4,000
Property Plant & Equipment	14,800	Total Liabilities	9,100
Other Assets	700	Paid-In Capital	7,700
		Retained Earnings	22,900
		Total Equity	30,600
Total Assets	39,700	Total Liabilities & Equity	39,700

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Sell product for $20,000 with historical cost of $16,000

What is the final amount in Retained Earnings?

Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.

Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).

Answer 1

20 Income Statement Sales Cost of goods sold Net Income $ $ $ 16 4 Statement of Retained Earnings Retained Earnings, beginning $ 22,900 Add: Net Income $ 4 Retained Earnings, ending $ 22,904 $ $ Upadated Balance Sheet Cash ($ 14,300 + 20 sales $ 14,320 Accounts Payable Accounst receivable $ 4,100 Debt Inventory ($ 5,800 - $ 16) $ 5,784 Other Liabilities Property, Plant & Equipment $ 14,800 Total liabilities Other Assets $ 700 Paid-in Capital Retained Earnings Total Assets $ 39,704 Total liabilities & Equity $ $ $ 1,900 3,200 4,000 9,100 7,700 22,904 39,704 $ $