Net income and retained earnings. Marge”s Seafood Market Inc. reported the following (incomplete) information in its records for 2007: (LO 3)
|
Net income |
$15000 |
|
Sales |
105000 |
|
Beginning balance-retained earnings |
30000 |
|
Cost of goods sold |
60000 |
|
Dividends paid |
2000 |
a. If the sales revenue given is the only revenue for the year, what were the expenses for the year other than cost of goods sold?
b. What does the beginning balance of $30,000 for retained earnings mean? Is this useful information for potential investors?
c. What is the balance of retained earnings at the end of 2001?