Given the following information about elkridge sporting goods, inc., construct a balance sheet for june 30, 2013. on that date the firm had cash and marketable securities of $25,135, accounts receivable of $43,758, inventory of $172,500, net fixed assets of $322,300, and other assets of $13,125. it had accounts payables of $67,855, notes payables of $36,454, long-term debt of $224,300, and common stock of $150,000. how much retained earnings did the firm have?

Retained Earnings = 109,909

Explanation:

First

We add all the assets together. 586,818

Then

we add the lliabilities and common stock. 476,909

Finally

We use the accounting equation to solve for RE

Assets = Liab + Equity

586,818 = sum of liab and equity accounts

we know that all the accounts, except RE add to 476,909

586,818 = 476,909 + RE

586,818 - 476,909 = RE

RE = 109,909

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