River Runners, Inc. reported the following information in its financials for the year ended December 31, 2012:
Dividends $ 3,000
Net Income 45,000
Total expenses 50,000
Retained earnings - beginning balance Jan. 1, 2012 30,000
Accounts receivable 20,000
1. What were the company's revenues?
2. How much of the past profits have been kept by the company as of December 31?
3. How much do customers owe River Runners as of December 31, 2012?
1. $95,000 revenue = $45,000 + 50,000
2. $122,000 = $30,000 + 95,000 — 3,000
3. $20,000
You might also like to view...
What type of account is Prepaid Rent, and what is its normal balance?
A) It is an expense account and has a debit balance. B) It is a liability account and has a credit balance. C) It is a revenue account and has a credit balance. D) It is an asset account and has a debit balance.
In high context cultures, the primary role of communication is to build relationships, not exchange information
Indicate whether the statement is true or false.