The following information is reported for kinney corporation at the end of 2013.
- accounts receivable $103,500
- retained earnings ?
- accounts payable 49,500
- supplies inventory 40,500
- cash common stock 6,000
- equipment 621,000 495,000
a. compute the amount of retained earnings at the end of 2013.
b. if the amount of retained earnings at the beginning of 2013 was $135,000, and $54,000 in cash dividends were declared and paid during 2013, what was its net income for 2013?

a. Compute the amount of retained earnings at the end of 2013.

With 621K in equip.     With 495K in equip.

                709.500583.500

b what was its net income for 2013?

                                                  With 621K in equip.     With 495K in equip.

Net Income                                      628.500502.500

Explanation:

                                  With 621K in equip.     With 495K in equip.

- Accounts Receivable $103,500  103.500  103.500  

- Supplies Inventory 40,500            40.500  40.500  

- Equipment 621,000 495,000   621.000  495.000

                              765.000         639.000

- Accounts Payable 49,500            49.500  49.500  

- Cash Common Stock 6,000       6.000  6.000  

- Retained Earnings ?                   709.500583.500  

                                                  765.000639.000  

Retainend earnings    

Begining                                             135000135000

Cas Dividens                                      -54000-54000

Retained earnings                             709.500583.500

Net Income                                      628.500502.500

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explanation: