Big Golf Corp paid taxes of $ 90,000 and purchased equipment worth $175,000 during the year that ended June 30, 2008. The firm had net income of $500,000 during the year ended June 30, 2008. After paying out $95,000 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $900,000, what was the level of retained earnings on its balance sheet on July 1, 2007?© BrainMass Inc. brainmass.com October 10, 2019, 4:31 am ad1c9bdddf
Purchase price of equipment=$175,000
This solution contains explanation of how to determine retained earnings on balanced sheets.