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Origami Inc. reported the following items on its financial statements for the year ended December 31, 2020: Sales                                                  $780,000 Selling and general expenses            20,000 Dividends                                                5,000 Cost of sales                                       700,000 Other expenses                                   15,000 Income tax expense                           12,500 What amount will be reported as retained earnings on the December 31, 2020 balance sheet, assuming this is the first year of operations? Select one: a. Cannot be determined from the information provided b. $22,500 c. $42,500 d. $27,500

Origami Inc. reported the following items on its financial statements for the year ended December 31, 2020: Sales                                                  $780,000 Selling and general expenses            20,000 Dividends                                                5,000 Cost of sales                                       700,000 Other expenses                                   15,000 Income tax expense                           12,500 What amount will be reported as retained earnings on the December 31, 2020 balance sheet, assuming this is the first year of operations? Select one: a. Cannot be determined from the information provided b. $22,500 c. $42,500 d. $27,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Origami Inc. reported the following items on its financial statements for the year ended December 31, 2020:

Sales                                                  $780,000

Selling and general expenses            20,000

Dividends                                                5,000

Cost of sales                                       700,000

Other expenses                                   15,000

Income tax expense                           12,500

What amount will be reported as retained earnings on the December 31, 2020 balance sheet, assuming this is the first year of operations?

Select one:
a. Cannot be determined from the information provided
b. $22,500
c. $42,500
d. $27,500
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