Hoc Automotive Ltd. reported a Cash balance of $2 million and a Retained Earnings balance of $12

Question:

Hoc Automotive Ltd. reported a Cash balance of $2 million and a Retained Earnings balance of $12 million. Explain how Hoc Automotive Ltd. can have so much more retained earnings than cash. In your answer, identify the nature of retained earnings and state how it ties to cash.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Accounting

ISBN: 978-0132690089

9th Canadian Edition volume 2

Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

Question Posted: