You work for Fig Computers Co. (FCC). You have few concerns and you asked your accountant to provide
you with the needed information to address those concerns. Your accountant provided you with the
following accounts and balances as of December 31, 2019.
Cash $ 10,000 Sales Revenue $135,000
Cost of goods sold 60,000 Inventory 21,000
Taxes Payable 31,000 Salaries Expense 7,000
Accounts Receivable 32,000 Dividends paid 22,000
Equipment 150,000 Accounts Payable 8,000
Utilities expenses 3,300 Retained Earnings, Jan. 1, 2019 40,000
Allowance for bad debt 4,000 Income Tax Expense 20,000
Prepaid Insurance expenses 2,000 Unearned revenues 3,000
1st) You need to determine FCC's net income for the year ended Dec. 31, 2019.
2nd) You need to determine the balance of retained earnings on Dec. 31, 2019?
3rd) you need to identify the current assets and final their total balance as of Dec. 31, 2019.