Question

On January 1, 2016, Big Hero invested $300,000 to start Hero Corporation. During the year, Hero Corporation had total revenues of $60,000 and total expenses of $16,000. Cash dividends paid totaled $12,000.What must have been the balance in Hero Corporation's total assets at the end of the year, assuming no liabilities?A. $ 32,000B. $332,000C. $268,000D. $300,000

Answer 1

Answer:

B. $332,000

Explanation:

The computation of the total assets is shown below:

= Invested amount + total revenues - total expenses - cash dividends paid

= $300,000 + $60,000 - $16,000 - $12,000

= $300,000 + $60,000 - $28,000

= $300,000 + $32,000

= $332,000

Invested amount reflect the capital and the total revenues minus total expenses minus cash dividend reflects the retained earnings