Question

For 2016, the Sacramento Corporation had beginning and ending Retained Earnings balances of $170,967 and $207,400 respectively. Also during 2016, the corporation declared and paid cash dividends of $23,400 and issued stock dividends valued at $14,000. Total expenses were $39,416. Based on this information, what was the amount of total revenue for 2016?a. $144,584b. $113,249c. $99,249d. $147,567

Answer 1

The answer is b. 113,249.

Step-by-step explanation:

Please find the below for the detailed explanations and calculations:

The difference in the Ending and Beginning Balance of Retained Earnings = 207,400 - 170,967 = $36,433.

The difference in the ending and beginning balance of retained earnings equals to:

Revenue for 2016 - Expenses for 2016 - total dividend paid out;

or Revenue for 2016 - 39,416 - (23,400+14,000) = 36,433 <=> Revenue for 2016 = 36,433 + 39,416 + 37,400 = $113,249.

Thus, the total revenue for 2016 is $113,249 and the answer is b. $113,249.