Explain how to find the accumulated retained earnings for 2021 and 2022 using the balance sheet identity?

 Note: finding the 2022 accumulated depreciation is needed to solve this.

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Partial Income Statement At the End of 2022 Sales revenue Cost of goods sold Fixed costs Selling, general, and administrative expenses Interest expense Depreciation Tax rate ASSETS Cash Accounts receivable Inventories Gross fixed assets Accumulated depreciation (-) Intangible assets ASSETS Cash and marketable securities Accounts receivable Inventories Gross fixed assets Accumulated depreciation (-) Intangible assets $350,200 $142,000 $43,000 $27,800 $0 $45,800 40% Partial Balance Sheet 2021 LIABILITIES $16,100 Notes payable $27,800 Accounts payable $47,900 Long-term debt $367,800 OWNERS' EQUITY $143,000 Accumulated retained earnings $81,900 Common stock Partial Balance Sheet 2022 LIABILITIES $26,000 Notes payable $19,200 Accounts payable $53,200 Long-term debt $448,200 OWNERS' EQUITY Accumulated retained earnings $82,000 Common stock $14,200 $18,800 $189,900 $131,900 $354,800 $11,800 $24,100 $161,800 $181,900 Partial Income Statement At the End of 2022 Sales revenue Cost of goods sold Fixed costs Selling, general, and administrative expenses Interest expense Depreciation Tax rate ASSETS Cash Accounts receivable Inventories Gross fixed assets Accumulated depreciation (-) Intangible assets ASSETS Cash and marketable securities Accounts receivable Inventories Gross fixed assets Accumulated depreciation (-) Intangible assets $350,200 $142,000 $43,000 $27,800 $0 $45,800 40% Partial Balance Sheet 2021 LIABILITIES $16,100 Notes payable $27,800 Accounts payable $47,900 Long-term debt $367,800 OWNERS' EQUITY $143,000 Accumulated retained earnings $81,900 Common stock Partial Balance Sheet 2022 LIABILITIES $26,000 Notes payable $19,200 Accounts payable $53,200 Long-term debt $448,200 OWNERS' EQUITY Accumulated retained earnings $82,000 Common stock $14,200 $18,800 $189,900 $131,900 $354,800 $11,800 $24,100 $161,800 $181,900

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Answer Following is the computation of Retained Earnings for the year 2021 using balance sheet identity Assets Liabilities Shareholders Equity Assets Cash Accounts Receivables Inventory Net Fixed Asse... View the full answer